Blockchain-based systems could save banks $12bn

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A new report from Accenture has outlined how more than $12 billion could be saved by the world’s largest investment banks if they switched to an infrastructure based on blockchain technology.

The study extrapolated general blockchain costing data and compared it to data from major investment banks with the aid of benchmarking firm McLagan. The results showed a potential overall saving of 30% in all areas should blockchain replace the “traditionally fragmented” database systems in use today.

Finance reporting costs could drop by as much as 70%, due to blockchain’s data optimisation and verification abilities, while compliance costs would be cut in half. Other smaller savings in customer engagement, management and office controls brings the total up to $12 billion saved by eight of the top ten investment banks in the world.

“Given the tremendous cost of data reconciliation – which is part of every aspect of the capital markets industry – it’s no surprise that we’ve seen a significant amount of investment in blockchain technology,” says David Treat, MD for Accenture’s Financial Services Industry blockchain practice.

“As we move into production implementations, bank executives will need a clear roadmap for how and where to rethink their strategies and redesign their operating models, which is why we undertook this unique study.”

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