Blockchain technology in banking

Will the chain wrap the banks?

Technology blockchain, that is the block chain, associated so far above all with cryptocurrencies, has a chance to enter the banking sector permanently. Despite the resistance, banks are increasingly considering the possibility of financial operations using it.

Another step or trip?

The new technology raises a lot of controversy. It is unquestionably modern, with great potential for development, ensuring savings in working time, workforce and operating costs. Some concerns, however, are its "independence" and the lack of legal regulations concerning its implementation in the banking sector. Recognizing, however, the advantages over defects, financial institutions have repeatedly mentioned that the block chain technology is seriously considered and most likely will soon become one of the paths of finance flow in banking. It is worth recalling that this year Economic Forum in Davos, an example of Dubai was given, where it was announced that by the 2020 year, blockchain will be implemented into the administration, which will save annually the equivalent of the construction costs of the Burj Khalifa tower. On this forum, the President of Bank Pekao SA, Michał Krupiński, said that blockchain is,an escaping train that can not be stopped"You only have to get into it, and preferably - lead.

Culinary - garnish and consume

As the research shows Kantar TNS, commissioned by the Polish Bank Association, in the period up to 5 years, the blockchain technology will become an environment commonly used in Polish banking. This was confirmed by 38% of the surveyed bankers. It is not surprising then that an increasing number of financial institutions are looking for ideas for its application. In addition to the obvious savings that are possible after the introduction of the blockchain, there are ideas to use blockchain to secure, for example, operations performed with a letter of credit. Additional benefits that support the implementation of this technology include: transparency of the register where more details can be recorded; increased network security; elimination of the risk of making an individual mistake; no need to duplicate settlement and banking documents; no intermediaries, real-time settlements and much more.

A bit of tar in the bowl

Unfortunately, blockchain also has disadvantages that for the banking sector at the beginning can be difficult to "overcome". First of all, the costs of implementing the process, the value of which can be millions of dollars, and in addition it is not known exactly what the relationship between effort and profit will be. Another difficulty is the fact that the block chain will be common to many entities and individual banks may be afraid of losing control, being placed in the relation of the faction that performs the function of an information processing point. However, if, according to the idea of ​​blockchain, an intermediary is unnecessary, why banks?

No future?

However, when comparing the profit and loss balance, it seems that blockchain is an attractive technology for financial institutions. This is confirmed by subsequent news from this world, in which more banks announce that they will join and use the blockchain in their systems. Certainly, further legal regulations and program support for this idea will ensure its significant participation in banking soon.