Use of blockchain technology in the banking system

Business Insider Intelligence has published an analysis report on the use of blockchain technology in the banking system. The bottom line is that financial institutions use technology to improve payments, securities settlement, fraud detection, and business finance.

Published on March 19, the report analyzed a number of financial and technological organizations around the world. These included Australia and New Zealand Banking Group, Bank of America, Citi Bank, HSBC, Ripple, Visa, Fidelity Investments and CME Group.

The use of blockchain technology in the banking system brings significant benefits

The findings showed that 66% of the financial institutions examined saw the major benefits of blockchain technology. The main advantage is the registration of payments in distributed registers. Also, 56% of respondents called settlement of securities as the main benefit.

41% of respondents said that fraud detection was one of the best cases for using the blockchain. Commercial finance represented the main area benefiting from technology for 38% of participants.

Difficulties in implementing blockchain

According to the report, financial institutions remain concerned about the commercial application of the technology, the uncertainty of the regulation and the difficulties of meeting competing participants. Moreover, the analysis indicated increased skepticism around the blockchain. Financial institutions have begun to notice that technology may not be usable in practice for certain types of financial activities. Basically, blockchain is not a miraculous solution to any kind of problem.

Another study by market research firm Research Dive shows that the global size of the blockchain and Internet of Things market could reach $ 5,802.7 million by 2026. However, lack of awareness of companies could be a critical factor. which influence this projected growth.