Blockchain implementation becomes crucial for banks to save $27bn p.a. by 2030
Juniper Research has recently conducted a research that proved that blockchain has a massive role to play in the banking sector. The research, which is called ‘The Future of Blockchain: Key Vertical Opportunities & Deployment Strategies 2018-2030’, states how blockchain will help the financial institutions to save more than $27 billion annually by the year 2030.
The research has added another feather in Blockchain’s hat. Every day with new updates about Blockchain taking over the internet, indicates that the technology is here to stay and will be implemented in a wider range of sectors.
How will Blockchain assist the banks?
Reasoning how this will be possible, the company that specializes in providing best-in-class market research and business intelligence across 6 key sectors, said that blockchain will assist in cost reductions in payment processing, reconciliation, treasury operations and compliance.
Juniper Research made this major FinTech tweet on 1st August based on their press release, stating: “#Blockchain
deployments to save #Banks more than $27bn annually by 2030, with cost reductions not just in #Payments
processing and reconciliation, but in treasury operations and compliance. #Fintech #Banking”
#Blockchain deployments to save #Banks more than $27bn annually by 2030, with cost reductions not just in #Payments processing and reconciliation, but in treasury operations and compliance. #Fintech #Banking
— Juniper Research (@juniperresearch) August 1, 2018
The research findings claim that there will be an 11% reduction in costs per on-chain transaction.
The company further stated: “Indeed, the research argued that in compliance, automation of identity/money-laundering checks, allied to capability of the blockchain to verify the digital identity of an individual, should enable savings of up to 50% of the existing costs base within a few years.”
However, the research also cautioned about the need to parallel-run blockchain-based services with legacy systems. This would ensure that 'savings would not be realized for several years after initial deployment, with annual cost reductions not reaching $1 billion per annum until 2024'.
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