Accenture released a report earlier this week showcasing how investment banks can reduce costs as much as $12billion a year by utilizing blockchain technology. The consulting firm looked at eight banks to determine the feasibility and savings of this technology stating that blockchain will “obviate the need for reconciliation and could prove a helpful resource for auditing.” Some banks have started to implement this technology to run back-office processes, but there is skepticism that banks are simply following the trend of block chain versus thinking of the future feasibility of this technology in banks.
The report also specifically looked to automating finance reporting and creating a distributed ledger. Such topics are significant portions of what our class encompasses. I found the following to be issues of implementing blockchain in banks and other institutions:
- Uncertainty over security
- Integration issues with systems already in place
- Initial costs to implement such technology are unknown
- Implementation and integration may outweigh future benefits
- Legal and regulatory acceptance of blockchain being used in this way
- It can take years before adoption protocols are put in place and adoption may be low thus creating a divide between those who use blockchain and those that do not
http://www.reuters.com/article/us-banks-blockchain-accenture-idUSKBN1511OU
https://www.accenture.com/us-en/insight-investment-bank-challenges-blockchain-technology