A majority of financial institutions believe blockchain technology is good for growth.
According to new data from FTI Consulting, 70 percent of financial institutions feel confident that blockchain technology will be good for business. Furthermore, among companies in the finance sector that reported having background knowledge and a strong grasp of blockchain, that number rose to 90 percent.
With the potential to dramatically bring down costs of processing, the benefits of blockchain technology are promising. Providing transparency and irrevocability in dealings and making trading faster, the distributed ledger technology is even bringing companies accustomed to fierce competition together.
More than 40 of the biggest banks – most notably Goldman Sachs, JP Morgan, Santander, Morgan Stanley and UBS – are now members of blockchain consortium R3, according to Financial News. And another initiative, the Hyperledger Project, has brought together both tech firms and finance institutions, including BNY Mellon and CME Group.
The structure and ideology behind blockchain in the finance sector is centered on collaboration. To put it simply:
“If you have a phone that can only be used to talk to yourself it is not very valuable,” said Julio Faura, head of R&D and innovation at Santander, in an interview with the source.
However, once the initial infrastructure of blockchain is determined, competition will resume as companies race to find the most successful approach.