Blockchain technology has recently caused much excitment in the field of financial technology. Therefore, Accenture sets out to make a value analysis
Blockchain technology has recently caused much excitment in the field of financial technology. Therefore, Accenture sets out to make a value analysis for investment banks and how blockchain banking can affect their business.
“Blockchain’s components – such as cryptographic hashes, distributed databases and consensus building – are not new. But when combined, they create a very powerful new form of data sharing and asset transfer, capable of eliminating intermediaries, central third parties and expensive reconciliation processes.”, as Accenture noted in their Insights & Implications section of the survey.
“Blockchain is challenging industry players to fundamentally reimagine their data sharing processes. There is no turning back.”, according to Accenture.
However, the company explained that blockchain is not an universal solution that can solve all problems in investment banking.
“For many use cases, conventional database structures or processes will achieve a similar outcome without the costs and challenges of a blockchain solution. Examples include internal automation, staff reduction and outsourcing/offshoring.”, as the company commented on page 7 of their survey.
Still, the results from their research suggest that blcokchain technology can bring many benefits for investment banks. The technology has the potential to help achieve short-term wins.
“While many parts of the investment banking ecosystem first need to align for distributed ledger technology to maximize its potential, we are already seeing some industry leaders demonstrate what is possible, right now.”, as Accenture wrote.