Juniper Research a market intelligence firm conducted a research on Blockchain and its future. The research report is titled as “The Future of Blockchain.” It majorly focuses on sectors where a financial institution could implement the blockchain and save a whooping $27 billion annually by 2030.
If the technology is adopted and things are deployed on it, then Financial institutions (Banks) could end up saving $27 billion annually on cross-border settlement transactions by 2030. Financial institutions could save $27 billion on cross-border settlement transactions. Thereby, accounting for savings up to 11% on-chain transactions.
The institutions won’t just be saving on the settlement transactions, but adopting the disruptive technology could also help them achieve reduce the costs up to 50%. For instance, they can automate money laundering checks. Other areas where these institutions could save include treasury, operations and compliance.Cost Reductions will take time
Results won’t be coming in a short period, it might take time for the results to arrive. It’s because even after implementing things on the blockchain, they’ll need to run their legacy systems parallel to blockchain based solutions in the beginning. The report also indicates that, we might have to wait till 2024 to reach $1 billion annual savings.
There’s another report by IHS markit regarding the growth of blockchain. This report says that implementation of blockchain in 12 different sectors could bring the business value of it to $2 trillion in 2030. Even, this report mentions that the results won’t be instant as the companies and institutions would need to run the legacy systems till they completely switch to blockchain.
Both the research reports mentions, that the finance sector could be one of the significant beneficiaries if they adopt blockchain.
The report from IHS also mentions about other areas besides cross-border settlement transactions. Some of the markets include, collateral management, claims management, assets custody, share trading, derivatives, and corporate actions processing. Some of these markets are worth more than 50 trillion dollars and even a small percentage of savings could help the institutions save billions.
We also posted about Jamie Dimon, Chairman and CEO at JPMorgan Phase saying “Blockchain is real” and they are testing a lot of things on it and will be using it for a lot many things in an interview at Harvard Business Review. To remind you, JPMorgan Phase is one of the Big 4 banks in America and they see a value in the technology and that’s the reason for testing many things on it.
