Banks set to use blockchain, study says
Charities already using blockchain could soon have backing from banks
Blockchain is to be used by the majority of financial institutions within three years, according to research conducted by IBM.
Already proving a hit with some charities, the latest study revealed that commercial blockchain solutions are rapidly being adopted throughout the banking and financial markets.
According to IBM, 15% of banks and 14% of financial market institutions intend to implement commercial blockchain systems next year. Mass adoption will not be far behind that, the tech giant says, as the survey revealed that approximately 65% of banks expect to have blockchain solutions in production in the next three years.
And seven out 10 of organisations that have already adopted blockchain are focusing their blockchain push on four areas: clearing and settlement, wholesale payments, equity and debt issuance, and reference data.
“There are many advantages to being an early adopter of blockchain technology,” said Likhit Wagle, Global Industry General Manager, IBM Banking and Financial Markets. “To start, first movers are setting business standards and creating new models that will be used by future adopters of blockchain technology. We’re also finding that these early adopters are better able to anticipate disruption, fighting off new competitors along the way.”
The organisations that have already adopted blockchain expect it to impact their business in a number of areas. This includes reference data (83%), retail payments (80%) and consumer lending (79%).
The survey did however identify a number of hurdles that need to be overcome before widespread adoption of the technology takes hold. These include regulatory constraints (56%), immature technology (54%) and lack of clear return on investment (52%).