In the report on use of blockchain in banking, Business Insider Intelligence explores early blockchain successes and failures at four major banks and identifies the lessons these early wins – and losses – have for the rest of the financial services industry.
The report explores four banks’ early blockchain project successes – JPMorgan and HSBC – and failures – Citi Bank and BofA – and the lessons they provide.
The companies also mentioned in this report are: Australia and New Zealand Banking Group (ANZ), Bank of America (BofA), CME Group, Fidelity Investments, HSBC, IBM, JPMorgan, Marco Polo, Mastercard, Nasdaq, PayPal, Ripple, Royal Bank of Canada (RBC), Santander, SWIFT, and Visa.
Here are the main findings of the report:
- Blockchain has been one of the most hyped technologies within financial services, heralded for its potential to eliminate pain points across the industry.
- Despite this enthusiasm, questions have come up about the technology’s efficacy as financial institutions struggle to actualize blockchain solutions. Among the key challenges holding back blockchain adoption are scalability and performance, trust, and regulatory uncertainty.
- Yet, for all its difficulties, blockchain’s promise to transform financial services processes has meant leading banks are attempting to figure out where the technology does and does not work firsthand, to varying degrees of success.
- To implement an effective blockchain solution, decision-makers should first determine how much they’re willing to commit to the technology and identify a genuine business problem that blockchain can resolve. Only then should they develop a strategy for delivering a blockchain project.