Blockchain Impact on the Financial Industry
Content of Figures
1 Introduction
The Financial Services sector has for many years been faced with complex and costly processes, intermediaries and their own legacy and hierarchical sy ...
Login Free 30-day Select Access Get full Access2 Overview of Blockchain
Blockchain is the underlying technology behind bitcoin. Bitcoin is known as a “trustless” model, the participants/users are referred to as “min ...
Login Free 30-day Select Access Get full Access3 Challenges
To enable the Financial Services sector to deploy Blockchain-based distributed ledger technology with real customers, there are Regulatory, Legal and ...
Login Free 30-day Select Access Get full Access3.1 Regulatory
There is a significant cost for every bank to be compliant with growing regulatory requirements – AML, FATCA, APRA, KYC and so on. Compliance costs ...
Login Free 30-day Select Access Get full Access3.2 Legal
The following is a brief list of emerging Blockchain application areas that may have legal implications: financial transfers, multi-signature transact ...
Login Free 30-day Select Access Get full Access3.3 Innovation
Banks appear to working hard on innovation capabilities that are largely targeted on product innovation far more than process innovation which may inh ...
Login Free 30-day Select Access Get full Access3.4 Scalability
The Blockchain (with bitcoin) was designed to scale across a wide network with thousands or even millions of participants; individual nodes were not i ...
Login Free 30-day Select Access Get full Access4 Benefits
There are many benefits associated with deploying Blockchain-based technology and applications in the Financial Services sector. These range from the ...
Login Free 30-day Select Access Get full Access4.1 Lower Operating Costs
Blockchain technology can modernise, streamline and secure cumbersome administrative functions, eliminate errors, lower operating costs and associated ...
Login Free 30-day Select Access Get full Access4.2 Efficient Regulatory Reporting
Allowing Regulators read only access to the comprehensive audit trail that records any movement of assets and to be tracked back to origin, Blockchain ...
Login Free 30-day Select Access Get full Access4.3 Shortened Settlement Times
Blockchain can add speed, efficiencies, enable disintermediation and reduce transaction costs to the settlement process. It can reduce risks that cou ...
Login Free 30-day Select Access Get full Access4.4 Disintermediation of the Market
A well implemented Financial Services Blockchain solution would eliminate much of the slow and expensive post-trade and clearing eco-system. It has t ...
Login Free 30-day Select Access Get full Access4.5 Delivery vs. Payment Transformation
The majority of financial assets such as bonds, stocks, loans and derivatives only exist in electronic form. With Blockchain bi-lateral trading in-pl ...
Login Free 30-day Select Access Get full Access4.6 Lower Risk of Fraud
Because of Blockchains’ distributed consensus approach in which multiple copies of a shared single ledger are being constantly evaluated to prevent ...
Login Free 30-day Select Access Get full Access4.7 Easier Access to Trade Finance
Currently, cross-border payments remain slow and expensive. Significant savings can be made by banks and customers by bypassing existing internationa ...
Login Free 30-day Select Access Get full Access4.8 Collateral Management
Collateral management is a critical topic now because the volumes of business at stake are huge, new regulations are introducing increasing complexity ...
Login Free 30-day Select Access Get full Access5.1 Banking Sector Use Cases
The Banking sector is very active in its pursuit of faster and less costly solutions to its largely legacy transaction processing infrastructure and B ...
Login Free 30-day Select Access Get full Access5.1.1 AML & KYC Registries
Anti-money laundering and Know Your Customer (KYC) registries are being trialled by using proof-of-stake protocols and identity management Blockchains ...
Login Free 30-day Select Access Get full Access5.1.2 Asset Registries
Blockchain technology asset registries could be deployed to manage virtually any asset class (e.g. ships, aircraft, automobiles etc.) and provide a co ...
Login Free 30-day Select Access Get full Access5.1.3 Collateral Management
Banks are investigating the use of Blockchain for collateralized trading markets including OTC derivatives, repo and securities lending.
Login Free 30-day Select Access Get full Access5.1.4 Intra Group Payments
Banks are exploring the use of Blockchain to move money country to country across their own networks for faster processing and lower costs.
Login Free 30-day Select Access Get full Access5.1.5 International Funds Transfer
The current process for cross-border payments relies on intermediaries (correspondent banks) before reaching the ultimate physical location. The proc ...
Login Free 30-day Select Access Get full Access5.1.6 Regulatory Reporting
By its nature the Blockchain is an unaltered chronological record of transaction history, delivered in a fully transparent and accessible form.
Many ...
Login Free 30-day Select Access Get full Access5.1.7 Securities Issuance and Settlement
The Securities Exchange Commission has approved the issue of public securities via Blockchain-based technology. This signals a significant shift in t ...
Login Free 30-day Select Access Get full Access5.1.8 Syndicated Lending
Syndicated Lending is a prime candidate for Blockchain technology. The current settlement time for a syndicated loan is around 20 days, heavily paper- ...
Login Free 30-day Select Access Get full Access5.1.9 Trade Surveillance
Blockchain can become a platform for trade surveillance as the focus shifts to the front office and sellside firms using Blockchain derived metadata t ...
Login Free 30-day Select Access Get full Access5.2 Insurance Sector Use Cases
Blockchain technology could also have a disruptive effect on the Insurance sector. To-date the Insurance sector has lightly embraced the technology u ...
Login Free 30-day Select Access Get full Access5.2.1 Identity Ledgers
In the majority of security breaches, hackers change identities of people or create new ones. They often create fake accounts with root level access o ...
Login Free 30-day Select Access Get full Access5.2.2 Insurance Contracts
Blockchain can facilitate the setup and management of insurance contracts using Smart Contracts technology to ensure data accuracy, correct payment an ...
Login Free 30-day Select Access Get full Access5.2.3 Risk Management
Blockchain technology could favour the emergence of alternative risk management models shifting away from risk pooling, the predominant model in insur ...
Login Free 30-day Select Access Get full Access5.2.4 Live Use Case
Everledger has developed a diamond register using Blockchain technology. Diamonds are a global problem, in terms of document tampering and fraud. For ...
Login Free 30-day Select Access Get full Access6 Changes to Expect
Financial institutions are looking into Blockchain to help them maximise operational efficiencies such as faster settlement and clearing times, better ...
Login Free 30-day Select Access Get full Access7 Summary
Blockchain technology is being taken seriously by the Financial Services sector and it may prove to be a great disrupter to the traditional ways of co ...
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