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New report argues blockchain could present unique challenges for financial institutions

Corporate Insight has released a new report titled ‘Blockchain Solutions and the Future of Finance’ in which it has evaluated the near- and long-term potential of the blockchain technology to improve transaction efficiency, firm profitability and customer experience.

The study identifies major trends affecting blockchain implementation, profiles organisations that are creating blockchain solutions for financial services, and illustrates potential use cases for the technology including loyalty programs, capital markets, real estate transactions, Know Your Customer, digital identity management, cross-border payments and the commodity market.

The research firm interviewed representatives from 14 key organisations and leaders in the blockchain space to gather insights on their products and solutions, current or future partnerships, industry challenges and thoughts on the future of blockchain.

The study found that nine out of 14 blockchain vendors are set to bring blockchain solutions into production between now and early 2018. There are some elements of blockchain technology that present unique challenges for financial institutions.

For instance, if a person mistakenly purchases a large quantity of securities, the immutability of a blockchain would make it challenging to fix the error. To account for this, blockchain providers are focused on developing solutions to resolve these and other industry-specific challenges.

Organisations are also finding innovative solutions for non-financial use cases. For example, BlockCypher has partnered with ShoCard, a blockchain startup developing digital identity solutions, and the Department of Homeland Security to help solve identity management challenges and enhance cybersecurity. The development of this use case is complementary to financial services, as it could help to alleviate aspects of the onerous Know Your Customer compliance process.

 

Interested in hearing leading global brands discuss subjects like this in person? Find out more at the Blockchain Expo World Series, Global, Europe and North America.

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