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Investment banks to save up to USD 12 billion a year by using blockchain

Friday 20 January 2017 13:31 CET | News

Accenture has released a report according to which blockchain technology could help investment banks cut their infrastructure costs by between USD 8 to USD 12 billion a year by 2025.

The report is based on an analysis of cost data from eight of the world’s ten largest investment banks, and provides a concrete estimate of blockchain’s potential savings. The study estimates that by deploying Bitcoin’s underlying technology to run some processes, like finance reporting, the eight banks analysed could reduce infrastructure costs by an average of 30%, helped by better data quality and transparency.

Costs associated with compliance, business operations such as trade support and centralized operations such as know-your-customer checks, could fall by up to 50%.

Still, their estimates did not include potential costs and investments required to deploy the technology. In addition, while sounding an optimistic note on the emerging technology’s potential, the report warned that if regulatory hurdles prevented blockchain’s widespread adoption, banks would not reap any of its benefits.


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Keywords: KYC, blockchain, investment banks, infrastructure, study, banks, Accenture
Categories: DeFi & Crypto & Web3
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