Banks are sold on blockchain, most will adopt it commercially by 2020: study

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According to a recent Infosys & LTP blockchain study, over 80% of bankers expect blockchain technology to be commercially adopted by 2020.

The study of more than 100 financial services professionals from 75 institutions found that 33% of respondents expect to see commercial blockchain adoption by 2018, while nearly 50% expect mainstream adoption by 2020.

The Infosys & LTP study was conducted to assess the current understanding of blockchain technology among banking industry professionals, discover the main adoption strategies and investments currently being pursued and identify the opportunities and challenges facing the industry.

The study highlighted extensive investment and interest in blockchain technology with the average investment in blockchain projects in 2017 expected to be about $1 million.

The survey revealed that 69% of banks were experimenting with permissioned blockchains, while approximately 50% of banks were either working with a FinTech start-up or tech company to expand their capabilities. Some 30% of respondents were found to be using the consortium model to investigate the technology.

The top five uses of blockchain expected to be adopted include cross-border payments, digital identity management, clearing and settlement, letter of credit process and syndication of loans.

Sanat Rao, Global Head of Finacle, commented, “This research reaffirms our belief that the blockchain technology has potential to help banks reimagine banking processes.”

“The technology can help banks automate inter-organization processes, significantly improve transparency and reset existing operational benchmarks,” he continued. “Several progressive organizations have already executed pilots to validate these propositions. We believe, in the coming quarters, the industry will experience greater momentum towards rolling out lab-pilots to real-life use cases.”

While the Infosys & LTP study illustrated widespread agreement about blockchain’s transformational potential, Rao notes that several questions remain. “How soon can the industry create collaborative networks with this technology? Can the technology meet the scalability requirements? How can we tackle the lack of governance models? How do we integrate multiple networks with existing infrastructure?”

More here [Infosys]

This article was originally published on TheFintechBuzz

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