60% of FS retailers who have some understanding of blockchain believe it will be the most significant tech development since the internet, according to research by Marketforce on behalf of Pegasystems and Cognizant.

The study surveyed 500 financial services and insurance industry executives across 56 countries. Although many had an understanding of blockchain as a potential game-changer, there are still a significant number of organisations displaying a lack of knowledge. 35% of all respondents admitted they have never heard of blockchain while, of those who had, 23% had no understanding of the technology.

In terms of those in the know, 53% said the technology would have a huge impact in clearing and settlement markets, while 36% also expect to see significant disruption from blockchain on the current account market. Meanwhile, 45% agreed the combination of blockchain wallets and Peer-to-Peer lending could even herald the “end of banking as we know it.”

Graham Lloyd, Director and Industry Principal of Financial Services at Pegasystems, says: “For many, the jury is still out on whether or not blockchain will be a force for good or not. However, we do know there’s no longer room to be complacent about such a potentially significant source of disruption. Banks and insurers must prepare themselves for the day when they might have to manage blockchain-stored customer data – whether it be their personal information, details of their assets, or even real-time data from virtual currencies. To do this, they will need to take the time to understand blockchain and how this emerging technology could affect them moving forward. The earlier this technology is understood at the highest levels of the business, the sooner organisations will be able to develop strategies to mitigate risk and harness the power of digital transformation. The smart players are those who already have teams dedicated to exploring this new technology.”

By Scott Thompson 


by Scott Thompson
Scott is Senior Editor at IBS Intelligence. You can follow him on Twitter and contact him at: Scott.Thompson@ibsintelligence.com