Blockchain: opportunities and challenges for banks

Efma feature

28 October 2019

A new Efma report is out now that looks at blockchain and its adoption by retail banks. Industry experts share their thoughts on the technology that can create major efficiency gains and enhance security, while giving clients more transparency anywhere, anytime.

Blockchain is an oft-used buzzword in the financial services industry at the moment. Blockchain’s potential to revolutionize entire segments of the financial services sector is well understood by executives. 

But there has not been universal acceptance of the potentially revolutionary technology. Blockchain’s uneven adoption throughout the globe is representative of both the opportunities and challenges facing financial institutions.

To examine in more detail those opportunities and challenges, Efma has produced another edition of its ‘Voice of the Members’ series that is all about blockchain.

Technological disruption on the horizon?

Technologies with immense disruptive potential are always met with resistance. However, despite technological, regulatory, and organizational challenges, blockchain’s adoption continues to spread. Given blockchain’s potential for innovation and efficiency, companies that prioritize open source solutions will have a distinct advantage over competitors.

As financial services providers recognize the benefits in terms of security, transparency, and adaptability, they are increasing their rate of blockchain adoption. These investments have created a strong foundation for the scaling of blockchain and point to a future where the technology is critical to fundamental business processes.

Hear from four industry leaders

While blockchain has not yet achieved mass adoption, financial institutions are increasingly recognizing the potential the technology possesses.

Naomi Snyman of Standard Bank said, “I see blockchain as a way to establish trust and advocate transparency, not to be feared, but openly embraced for the change that it could bring to both corporations and humankind.”

We spoke with four leaders in the space who are spearheading efforts to implement the technology at their respective institutions. In the report you will see their thoughts on the biggest opportunities and challenges presented by this revolutionary technology.

To read what industry leaders from all over the world are thinking about the future of blockchain and more, download the publication

Keywords : Bank Products & Services , Blockchain , Cybersecurity/Authentication , Digital payments/Wallet

Geography : International