Santander: Blockchain Tech Can Save Banks $20 Billion a Year

QuestionAuthority

legendary

Activity: 2156

Merit: 1393

You lead and I'll watch you walk away.

Quote

Bitcoin and the block chain go hand-in-hand. Or do they?

Yes, creating the world's first global currency is innovative, but the banking industry has many other priorities, like becoming more efficient internally. Enhancing the speed of transactions, improved security, and streamlining the auditing process are realistic uses of Bitcoin's block chain. Except the goal is to ape the technology without the need for bitcoin as a currency. The real goal is making a system designed to be decentralized into one of centralized control, without the incentive program it was designed to have, a neat banker trick if they can pull it off.

Source: https://www.cryptocoinsnews.com/bankers-begin-using-block-chain-technology-without-bitcoin/

Amadues

hero member

Activity: 924

Merit: 1001

Quote from: ChrisPop on June 16, 2015, 01:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

Maybe in a long view the bank can create new services for the users, and give some opportunity for the final users, but obviously they will keep the major profit for they. In a short term view I think an interest of the Bank in the blockchain can help the growth of bit coin (as value, as people that use/know … etc…)

R2D221

hero member

Activity: 658

Merit: 500

Quote from: BitmoreCoin on June 16, 2015, 04:24:17 PM

Quote from: oblivi on June 16, 2015, 01:34:27 PM

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

If everyone uses bitcoin blockchain, your home computer will not be able to cope with the size.

Some mutuals (building society) can pass on the savings.

You shouldn't be storing the blockchain on your home computer anyway.

Amph

legendary

Activity: 3206

Merit: 1069

Quote from: jonald_fyookball on June 16, 2015, 07:33:30 PM

Quote from: countryfree on June 16, 2015, 07:24:34 PM

$20 Billion a Year, really?
Anyway, I wouldn't like my bank to use the blockchain, for the excellent reason that it's public. The best banks are private institutions with all their books private, far from all eyes. A blockchain is definitely a smart way to keep a database, but each bank needs to build its one private blockchain if they think it's better than their actual solutions.

"private blockchain" Huh

That makes no sense. The whole point of the blockchain is that its distributed.

and public, not private, so they can't be friend ever, at best they can build something alike that could resemble a centralized blochchain with public transaction, for more transparency

SebastianJu

legendary

Activity: 2674

Merit: 1082

Legendary Escrow Service - Tip Jar in Profile

The funny thing is, they have to accept bitcoin as well when they want to use the advantages of the blockchain. Only then its ensured that the blockchan is safe enough. And so far only the monetary bonuses coming from bitcoin mining can ensure an uncorrupted blockchain.

Somehow it makes me laugh. Cheesy

ticoti

hero member

Activity: 854

Merit: 1000

There are many people interested in the blockchain technology and I think we are in front of one of the most important inventions of this century,but we don't realise about it.
From 2020 on, we will appreciate it with the use of the biggest enterprises in it

jonald_fyookball

legendary

Activity: 1302

Merit: 1004

Core dev leaves me neg feedback #abuse #political

Quote from: countryfree on June 16, 2015, 07:24:34 PM

$20 Billion a Year, really?
Anyway, I wouldn't like my bank to use the blockchain, for the excellent reason that it's public. The best banks are private institutions with all their books private, far from all eyes. A blockchain is definitely a smart way to keep a database, but each bank needs to build its one private blockchain if they think it's better than their actual solutions.

"private blockchain" Huh

That makes no sense. The whole point of the blockchain is that its distributed.

countryfree

legendary

Activity: 3038

Merit: 1047

Your country may be your worst enemy

$20 Billion a Year, really?
Anyway, I wouldn't like my bank to use the blockchain, for the excellent reason that it's public. The best banks are private institutions with all their books private, far from all eyes. A blockchain is definitely a smart way to keep a database, but each bank needs to build its one private blockchain if they think it's better than their actual solutions.

jbrnt

hero member

Activity: 672

Merit: 500

Banks CAN use blockchain tech to store their ledger, but they wouldn't. They will not be bold enough to ditch their databases and I think they would prefer keep their accounts data private. They can use the bitcoin blockchain to timestamp some transactions like interbank clearing and wire transfer. These wouldn't save much costs.

neurotypical

hero member

Activity: 672

Merit: 502

Quote from: EternalWingsofGod on June 16, 2015, 06:01:52 PM

Quote from: ChrisPop on June 16, 2015, 01:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

That is a lot of savings, the chances of it being passed to consumers is however very slim.
On the other hand it might allow smaller banks to remain competitive and scale up, such as credit unions.

Even if they find a way to make geat reductions of costs of running their banks, im sure they'll still keep charging the same ridiculous fees for the clients. Hopefully this pushes people into using Bitcoin instead of regular banking.

EternalWingsofGod

hero member

Activity: 700

Merit: 500

Quote from: ChrisPop on June 16, 2015, 01:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

That is a lot of savings, the chances of it being passed to consumers is however very slim.
On the other hand it might allow smaller banks to remain competitive and scale up, such as credit unions.

jonald_fyookball

legendary

Activity: 1302

Merit: 1004

Core dev leaves me neg feedback #abuse #political

Quote from: Slark on June 16, 2015, 04:19:37 PM

Quote from: melody82 on June 16, 2015, 04:12:08 PM

Quote from: ChrisPop on June 16, 2015, 01:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

You are kidding right? Can you seriously imagine banks passing those savings on to consumers? No they will pass the extra money right back into their own pockets just like they always do!

I think nobody is stupid enough to think that saved money with blockchain tech will help customers, people in need or anyone but banks. It will be a waste and it will only make financial elites even richer.
But I wonder how they will manage their own blockchain. Will they provide computing power themselves and it will be private blockchain?

Are you saying there isnt meaningful competition between banks? Competition usually forces savings to be passed onto consumers.

pereira4

legendary

Activity: 1610

Merit: 1183

Quote from: BitmoreCoin on June 16, 2015, 04:24:17 PM

Quote from: oblivi on June 16, 2015, 01:34:27 PM

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

If everyone uses bitcoin blockchain, your home computer will not be able to cope with the size.

Some mutuals (building society) can pass on the savings.

The point of sidechains is to avoid precisely that.
I see everyone talking about blockchains, but no one is saying exactly how they will do it without Bitcoin.

BitmoreCoin

sr. member

Activity: 406

Merit: 250

Quote from: oblivi on June 16, 2015, 01:34:27 PM

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

If everyone uses bitcoin blockchain, your home computer will not be able to cope with the size.

Some mutuals (building society) can pass on the savings.

Slark

legendary

Activity: 1862

Merit: 1004

Quote from: melody82 on June 16, 2015, 04:12:08 PM

Quote from: ChrisPop on June 16, 2015, 01:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

You are kidding right? Can you seriously imagine banks passing those savings on to consumers? No they will pass the extra money right back into their own pockets just like they always do!

I think nobody is stupid enough to think that saved money with blockchain tech will help customers, people in need or anyone but banks. It will be a waste and it will only make financial elites even richer.
But I wonder how they will manage their own blockchain. Will they provide computing power themselves and it will be private blockchain?

melody82

sr. member

Activity: 378

Merit: 257

Quote from: ChrisPop on June 16, 2015, 01:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

You are kidding right? Can you seriously imagine banks passing those savings on to consumers? No they will pass the extra money right back into their own pockets just like they always do!

unamis76

legendary

Activity: 1512

Merit: 1009

They are finally discovering gun powder Roll Eyes

It was taking long to praise blockchain technologies... Now the question is, how are they going to implement it for fiat currency? Whatever they're going to do, I bet it will be centralized.

oblivi

hero member

Activity: 700

Merit: 501

Quote from: ChrisPop on June 16, 2015, 01:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

ChrisPop

legendary

Activity: 2310

Merit: 1033

Not your Keys, Not your Bitcoins

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

Topic: Santander: Blockchain Tech Can Save Banks $20 Billion a Year (Read 1025 times)