IBS Journal October 2016
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transactions, down 9.49% year-on-year. Meanwhile, there has been a dramatic increase in the use of debit cards. They now account for over 53% of sales turnover.
47%… An increasing number of banks are realising the potential of blockchain technology and are exploring ways of using it, according to an Infosys report, based on the views of 81 banking and FinTech experts.
Key findings include: Blockchain may decrease costs, increase security, transparency and efficiency in various financial markets. The most promising use cases were identiifed in cross-border payment transactions, trade finance and in the Over the Counter (OTC) market; Despite a lack of regulation, blockchain will become widespread in financial services in the next 5-10 years with 47% of financial institutions evaluating it; Collaboration between banks and the FinTech sector is essential for improving and popularising the technology.
Dr. Eric Günter’ Krause, Partner, Infosys Consulting, says: “The research shows that the financial services industry has woken up to the value and importance of blockchain. We are certain that the pace of development will only grow in the near future. However, going forward it is vital that banks, businesses and regulators work together to evaluate and properly integrate the technology in the regulatory frameworks. Only then can blockchain achieve its maximum spread and capability.”
15 %… More blockchain news (because we know you can’t get enough of DLT)…Leading global banks are
adopting the technology “dramatically faster” than expected, with 15% prepping roll outs of full-scale, commercial blockchain products in 2017, according to an IBM survey of 200 banks.
This also found that 65% of banks plan to have projects in production in three years’ time, with larger banks taking the lead, focusing on such areas as clearing and settlement, wholesale payments, equity and debt issuance and reference data. “The industry is hurtling toward blockchain adoption far faster than many expected,” IBM said in a new report. “2017 looks to be the year banking on blockchains shifts from zero to sixty.”
In a separate survey of 200 other global financial markets institutions, meanwhile, 14% intended to implement commercial blockchain products in 2017. “First movers are setting business standards and creating new models that will be used by future adopters of blockchain technology,” says IBM Banking and Financial Markets general manager Likhit Wagle. “These early adopters are better able to anticipate disruption, fighting off new competitors along the way.”
48%… Food for thought for digital-only challenger banks. Online and mobile banking has surged in popularity
over recent years, but new EY research also shows many people are wary of FIs with no brick and mortar presence. 48% of UK customers would not be comfortable sorting out their finances solely online or by mobile, while a third don’t trust a bank without physical branches, according to EY’s Global Consumer Banking Survey.
“It is important that banks move at a pace customers are comfortable with and allow them to choose how they want to interact with their bank,” says David Ebstein, Europe, Middle East, India & Africa head of digital financial services at EY. “While they are right to encourage online and mobile banking, face-to-face communication clearly remains an important way to communicate for many people. In the same way that people at first were reluctant to replace their fax machine with email, this is simply a learning curve that banks must help their customers with. Although people are increasingly less reliant on branches, digital remains complementary, and not a complete replacement for human interaction.”
www.ibsintelligence.com
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