MIT Report: Blockchain for Banks - New Era or Lipstick on Pig?
Could rapid innovation in the fintech space lead to the end of banks as we know them? A recent report from Massachusetts Institute of Technology (MIT) titled Digital Banking Manifesto: The End of Banks explores these possibilities. Innovation has resulted in revolutionary changes and new leaders emerging in multiple industries including retail (Amazon), travel (Expedia), communications (Skype, Whatsapp), and so on. However, the banking industry has been less affected, with centuries-old banks still remaining market leaders. While there have been some changes in the ways they function, with....
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Accenture, a $75 bln consulting and professional services firm, revealed in its report that the implementation of Blockchain technology could save investment banks up to $12 bln a year. The report entitled “Banking on Blockchain, a Value Analysis For Investment Banks” released by Accenture Consulting in collaboration with Aon, is based on a survey which the firm’s researchers conducted with eight major investment banks. According to the report, the utilization of Blockchain in supplementing manual processes and operations of banks can save organizations up to 30 percent in annual savings....
A new Morgan Stanley report aimed at assessing whether blockchain is a threat to big banks agues that the short-term benefits of the technology are likely minimal, but that future growth is likely. Published yesterday, the report features a timeline of when Morgan Stanley predicts certain blockchain milestones will be reached. Culminating in 2025, Morgan Stanley identifies 10 roadblocks to banks integrating blockchain. However, the report includes language that suggests the global investment bank may be seeking to understand how blockchain tech may impact its portfolio or perhaps its own....
Banks are not moving fast enough to protect themselves against blockchain disruption, which could result in a loss of up to $150 billion in revenue, according global management consultants Bain & Company. Bain: Banks ‘Flat-footed’ in Face of Blockchain Disruption. The firm, which filed a report on banks’ responses to blockchain last week, said that....
As the Chinese government is turning toward researching and exploring possible applications of blockchain technology, the country’s big banks are increasingly hiring experts and developers to keep up with digitization and a technology-driven landscape. Having included blockchain development in its latest 5-year plan, the Chinese government’s efforts to embrace FinTech also sees the country’s central bank, the People’s Bank of China (PBOC), explore and research the possibility of introducing its own digital currency. The agenda is contrary to the usual notion of central banks being late to....