According to the leading analyst house in the digital commerce and FinTech sector, Juniper, which is delivering pioneering research into payments, banking, and financial services, banks will be able to lower the expenses and save up to $27 billion annually by 2030 by deploying blockchain technology.
Banks Need to Adapt to Keep the Pace
Just like every technological breakout renders a certain number of industries obsolete, the blockchain technology started to threaten the financial establishment.
With a broader adoption of cryptocurrencies, payment mechanisms began to bypass middlemen, who provided transactional services for a fee and substitute them with inexpensive technologies. As a result, traditional banks have anticipated the potential issue and decided to prepare for the storm as best as they can.
They have reached out to the distributed ledger and the companies which are providing new solutions to help them with the pressing matter.
Ripple as a Pioneer
As The Blockchain Land already reported, Business to Business transactions are the perfect polygon for the implementation of the blockchain, because, powered by the revolutionary technology, the cost of such payments can be radically reduced.
It is already well known that Ripple Labs has been introducing the blockchain technology to the variety of financial institutions across the world, and have been very successful in implementing their RippleNet and Ripple xCurrent solutions primarily in Asia.
But Ripple’s involvement didn’t lead to the monopoly as other providers came up with their own systems.
One of the most prominent technology was developed by the giant IBM, which spearheads the market with their solutions for digital Identity, provenance, and financial services.
“IBM continues to demonstrate innovation and leadership across a range of verticals,” Dr. Windsor Holden, the author of the research states and continues: “Over the past 18 months it has attracted dozens of corporate clients, with deployments now moving from proofs of concept and trial to full commercial roll-out.”
Savings Encompass Several Banking Departments
While the research focus is set to Business to Business cross-border payments, which will be saving up to 11%, more banking departments will benefit from new technologies.
The automation of anti-money-laundering can reduce 50% of the total expenses within a couple of years.
The Benefits are Mutual
Through helping financial institutions to make their businesses more efficient, the blockchain industry will likewise promote itself.
Another research, conducted by a world-leading team in critical information, analytics and solutions, IHS Markit, shows that by cooperating with the establishment, and incorporating blockchain into corporate business procedures, the global value of the blockchain-based business can increase from $2.5 billion, which was a 2017 result, to the possible astronomical $2.0 trillion by the already mentioned 2030.
Just like it is the case with banking, the blockchain is making its way into every pore of global financial and other industries, and is, by its disrupting nature, quickly becoming a crucial component for any business aspiring to be a market leader in its field.
Did you find this article helpful? Don’t hesitate to share on Facebook and LinkedIn to let your network know!