The Bain & Company, a Palo-Alto based global management consulting firm, published an article, discussing the opportunities and challenges today’s banks faced as Distributed Ledgers Technology(DLT) is maturing.
After interviewing over 50 related key persons in the industry, the article proposes that for “super-regional banks”, they should, first, cooperate to complement each others’ geographical coverage and then, take advantage of DLT to compete with “global powerhouses”, another type of bank mentioned in the article, with a lower cost by replicating their smaller, regional networks. For “global powerhouses”, of course, they should implement DLT asap and then create entry barriers for late followers by “developing systems internally, lobbying regulators to tight” the corresponding regulations.
But is it necessary for every bank to in-take the technology with no doubts? Especially for smaller banks, the cost of implementing DLT is extremely high due to smaller size of the corporations and limited number of technology personnels, compared to international banks. Plus, taking the nature of domestic and regional payment transactions into consideration, are they as difficult and complicated to track and investigate as international payments? “Super-regional” banks should leverage their nature of business to wisely distribute their resources, before investing too much into DLT.
Source: http://www.bain.com/publications/articles/distributed-ledgers-in-payments-beyond-bitcoin-hype.aspx