[October 25, 2016] |
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Nine out of 10 Major Banks in North America and Europe are Exploring the use of Blockchain Technology for Payments, Accenture Survey Finds
Nine out of 10 banking professionals surveyed at large U.S., European
and Canadian commercial banks said their company is currently exploring
the use of blockchain technology for payments, according to a new report
from Accenture (News - Alert) (NYSE:ACN). The initiatives are designed to reduce costs,
speed payments, reduce errors and drive new revenues.
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The report - Blockchain
Technology: How banks are building a real-time global payment network
- is based on a survey of 32 top commercial banking professionals that
was designed to assess their views on the potential of blockchain
technology to transform the payments business. The survey included
executives from 11 of the top 20 U.S., Canadian and European banks, by
assets, and three of the top five institutions within each geography.
According to the survey:
-
Thirty percent of banks are in the advanced stages of adopting
blockchain technology for payments - with executives indicating that
they are either "at the forefront of the revolution" (17 percent), or
"engaged in production implementation" (13 percent);
-
Seventy percent of banks are still in the early stages of adoption,
with 30 percent "involved in proof-of-concepts with other companies,"
27 percent still "formulating a strategy" and 13 percent "looking into
the technology."
"Cross-border payments are ripe for innovation using blockchain and
distributed ledger technologies," said Richard Lumb, group chief
executive - Financial Services at Accenture. "The technology could
resolve inefficiencies and friction that have long driven up the costs -
and the time - required to move money around the world. Blockchain has
proven its scalability to support such infrastructure. And as the
industry sets its focus on developing the networks, business processes
and standards needed to run these systems, payments could be one of the
first major proving grounds for enterprse blockchain adoption."
The survey found the most prevalent use cases for blockchain technology
within payments are intra-bank cross-border transfers (44 percent ranked
as the number one priority), with a secondary focus on cross-border
remittances, corporate payments and inter-bank cross-border transfers.
Across the board, the executives surveyed expect that blockchain
technology will help lower frictional and administrative costs, create
quicker settlement time with fewer errors and exceptions, and provide
greenfield revenue opportunities through innovative new products and
services based on this transformative technology offered to bank
customers.
Regulatory and compliance concerns
Half of the bank executives surveyed say they recognize the challenges
associated with integrating and implementing blockchain technology. This
is primarily due to regulatory (63 percent) and compliance (56 percent)
concerns that have caused internal resistance to blockchain adoption.
Nearly one-third of executives surveyed highlighted security as another
impediment.
Richard Meszaros, Connected Commerce lead in Accenture Digital and
co-author of the report, said: "For many executives, the value
proposition for blockchain is not yet clear enough and top
decision-makers have insufficient understanding of the technology.
Providing education to employees and executives continues to be critical
for the near-term. But the broad success of blockchain in payments
hinges upon industry collaboration to create supporting networks that
include banks and non-banks."
Methodology
During August and early September of 2016, a research agency, working on
Accenture's behalf, interviewed 32 commercial banking professionals to
learn about the evolution of the global transaction banking markets.
Interviews were conducted via telephone with respondents at domestic and
international banks in the United States, Canada and Europe. Respondents
were asked a series of questions about the potential of
blockchain/distributed ledger technology to transform the payments
business.
About Accenture
Accenture is a leading global professional services company, providing a
broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and
specialized skills across more than 40 industries and all business
functions - underpinned by the world's largest delivery network -
Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their
stakeholders. With approximately 384,000 people serving clients in more
than 120 countries, Accenture drives innovation to improve the way the
world works and lives. Visit us at www.accenture.com.
Accenture Digital
Accenture Digital, comprised of Accenture
Analytics, Accenture
Interactive and Accenture
Mobility, offers a comprehensive portfolio of business and
technology services across digital marketing, mobility and analytics.
From developing digital strategies to implementing digital technologies
and running digital processes on their behalf, Accenture Digital helps
clients leverage connected and mobile devices; extract insights from
data using analytics; and enrich end-customer experiences and
interactions, delivering tangible results from the virtual world and
driving growth. To learn more about Accenture Digital, follow us @AccentureDigi
and visit www.accenture.com/digital.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025006246/en/
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