IBM: BANKS ADOPT BLOCKCHAIN TECHNOLOGY IN LESS THAN 3 YEARS

Computer technology company IBM published the results of a study carried out with financial institutions, in which it revealed that 65% of large banks expect to join the blockchain technology within a period of three years. IBM indicated that it is faster than expected.

IBM conducted two preliminary studies that yielded this data and that were coordinated by the IBM Institute for Business Value (IBV). The study that takes by name "Leading the Pack in Blockchain Banking: Trailblazers Set the Pace (1)" reunites to near 200 banks globally, but a second study titled "Blockchain Rewires Financial Markets: Trailblazers Take the Lead (2) ", Includes 200 specialized institutions in the financial markets.

Regarding banking institutions, it is indicated that 15 percent of the interviewees will implement blockchain solutions on a large scale during the year 2017; in the case of financial entities, they are 14%. Meanwhile, 70 percent of the agencies that will adopt the blockchain do so to solve problems of the current transaction system, create new business models and create new markets, focusing their efforts in the areas of payments, transactions, data recording and issuance of debts.

In a press release, Likhit Wagle, who is the General Manager of IBM Banking and Financial Markets listed certain advantages that companies will have to adopt technology quickly.

There are many advantages to adopting blockchain technology quickly. To begin with, those who take the lead will establish the new business parameters and create new models that will be used in the future. We also find that early adopters of blockchain technology will anticipate the disruption of the financial system and have an advantage over new competitors.

Likhit Wagle
General Manager, BM Banking and Financial Markets

Those who will adopt this technology soon hope that the blockchain will seriously impact in different areas of business. When asking the banks what new model based on the blockchain could emerge in these coming years, 80 percent responded that the transactions business, the collection of benchmark data and the corporate loans had the potential to achieve this.

However, even banks and financial institutions maintain some concern about the regulatory policies to be implemented, the development of technology, and whether changing the financial system to one based on blockchain technology will allow them to have some return on investment soon.

IBM highlights that blockchain technology increases user confidence, so that institutions can provide their services to a greater number of companies and customers. In addition, start-ups can be more competitive and reliable.