Technology

Posted on September 30, 2016 by staff

Majority of banks and financial firms to adopt blockchain

Technology

Blockchain technology is to be used by majority of financial institutions within three years.

That was the finding from two IBM studies which surveyed 200 banks and 200 global financial institutions respectively.

Many believe that the open ledger technology which underpins virtual currency Bitcoin has the potential to regulate the incredible volumes of data being generated, protect consumer privacy and improve governmental and industrial transparency.

And the studies found that commercial blockchain solutions are being adopted throughout the banking and financial markets.

Fifteen per cent of banks and 14 per cent of financial market institutions intend to implement them next year, while 65 per cent of banks will be working on such solutions in the next three years.

“There are many advantages to being an early adopter of blockchain technology,” said Likhit Wagle, IBM’s global industry general manager in 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.”

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The studies found that 83 per cent of those adopting the tech expect it to improve reference data, 80 per cent think it will lead to better retail payments and 79 per cent expect improved consumer lending.

In July, IBM launched a cloud service for companies to test blockchain projects in a secure environment.

Earlier this year digital minister Matthew Hancock said the Government was looking at making use of the technology to track public money such as student loans.

And it appointed its first official blockchain provider in August after start-up Credits was awarded a place on the G-Cloud 8 contractor framework.

Blockchain has been described as the “silver bullet” needed by the Internet of Things industry.