New research by consultancy firm Accenture and McLagan suggests that eight of the world’s ten largest banks could save an average of 30% through the use of blockchain technology.
In further evidence that blockchain could have cost-saving implications for financial institutions, last week McKinsey consulting stated that the global financial services sector could save up to $110 billion in costs over the next three years through the use of blockchain.
The report, cited in Finextra, was compiled by Accenture and operations benchmarking specialist McLagan, and suggests that eight of the top 10 investment banks could see between $8 and $12 billion in annual savings.
Currently, banks need to keep their own databases of customer profiles complete with transactions, customer information and other data. To complete a transaction they need to reconcile all information against their database. The use of blockchain technology allows for shared databases that cut reconciliation costs by spanning organisations.
Know Your Customer and client onboarding could bring 50% savings by establishing more-efficient processes to manage digital identities and by sharing a single source of client data securely across multiple banks. Business operations could also slash operating costs by as much as 50% by establishing more efficient processes.
“Given the tremendous cost of data reconciliation — which is part of every aspect of the capital markets industry — it’s no surprise that we’ve seen a significant amount of investment in blockchain technology” said David Treat financial services industry blockchain practice, Accenture.
Read the full story at Finextra:
Blockchain technology could reduce infrastructure costs for eight of the world's 10 largest investment banks by an average of 30%, saving them billions of dollars every year, new research from Accenture and McLagan suggests. Banks around the world are pouring resources into distributed ledger technology, betting on its potential to revolutionise their business models and make them huge savings.
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