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Blockchain Technology In Retail Banking

Blockchain Technology In Banking & Finance

Blockchain Technology In Banking & Finance

How Blockchain Technology Spawned Virtual Currencies Blockchain technology, less commonlyknown asdistributed ledger technology (DLT), is the underlying foundation that can create shared digital databases of entries that are unchangeable. Initially, the tech's developers conceived it as a way to centralizerecord-keeping (particularly of financial transactions) without the need for authorization by an thirdparty. Instead, multiple users with access to the data confirm the records. Blockchain started to gather mainstreamattention in 2009 when it becamethe underlying technologythat powers the cryptocurrency Bitcoin. Blockchain technology proponents believe it can be used to create secure and convenient alternatives to time-consuming and expensivebanking processes. And this theory seems to be gaining traction, as almost every major bank around the world is testing it. For example, banks are trying to create systems that decrease the number of participants involved in transactions. But some have invested more heavily than others. Some are investing in blockchain startups. Others are partnering with fintech companies that use blockchain (in fact, nearly all blockchain-based proofs of concept (POCs) developed by banks have been undertakenin conjunction withfintech partners.) And finally, multipleglobal banks including UBS, Goldman Sachs, and Morgan Stanley have published research on blockchain technology through in-house efforts; however, this research is mostly limited to explaining technical detailsand exploring theoretical use cases. Few banks to this point have constructedtheir own blockchain-based systems or in-house technology without the aid ofbanking or fintech partners. But a handful of largeglobal banks with the necessary resources to research and build large-scale p Continue reading >>

Blockchain: A Real Opportunity For Retail Financial Services

Blockchain: A Real Opportunity For Retail Financial Services

Bas Wisselink, Nxt: I dont believe high street banks will disappear and be replaced by online blockchain alternatives 2016 has seen a number of leading institutions and platforms within the financial services sector test and pilotblockchain technology . As more and more blue-chip companies begin to realise the benefits a decentralised ledger can bring, areas such as clearing, transactions and data storage are being viewed in a different light. Some observers including myself are even prophesising this being the dawn of a new era similar to the internet in the early 1990s that could see the traditional dominance of high street banks and blue-chip institutions relegated to the past. As younger generations, particularly millennials, look to their mobile devices to carry out payments and other banking transactions, the brick and mortar bank will increasingly begin to resemble a monument to a by-gone age. The world of retail banking, is increasingly looking towards blockchain technology to improve the antiquated processes and legacy issues that accompany decades-old infrastructure. The question for investors will increasingly be whether blockchain technology will fully displace existing participants or merely supplement and improve their services. Given the pace of change and innovation underway in traditional industries it would take a brave person to predict how the finance industry will look in five years time, however I dont believe high street banks will disappear and be replaced by online blockchain alternatives, the regulatory hurdles are just too high. Instead, blockchain technology could revive the financial behemoths, replacing creaking infrastructure and providing an equality of services to people living outside major urban areas. Apple iTunes, PayPal and Amazon Continue reading >>

Top-10 Technology Trends In Retail Banking: 2018

Top-10 Technology Trends In Retail Banking: 2018

Top-10 Technology Trends in Retail Banking: 2018 The proliferation of technology and entry of new players such as FinTechs continues to disrupt the retail banking industry. Augmenting customer experience has been the need of the hour as customers increasingly adopt digital products and services. In pursuit of more nimble processes and innovative approaches, traditional retail banks are enthusiastically investing in digital transformation and FinTech collaboration. With banks under pressure to boost revenues and reduce costs, while delivering better customer experience, they have been investing in emerging technologies such as blockchain, Artificial Intelligence, and Digital IDs. Moreover, banks are automating their processes and increasingly migrating their infrastructure and applications to the cloud to create a seamless customer journey. Many regulations and open-banking initiatives are emerging across the globe aimed at fostering innovation. To stay competitive, banks must remain cognizant of numerous implications from within and from outside the financial services industry. This report explores and analyzes the most high-impact tech trends expected to drive future retail banking ecosystem dynamics. Continue reading >>

Blockchain And Retail: Four Opportunities

Blockchain And Retail: Four Opportunities

Blockchain and Retail: Four Opportunities I focus on the digital consumers impact on retail. Opinions expressed by Forbes Contributors are their own. Blockchain's opportunity in retail goes beyond Bitcoin Bitcoin, blockchain, distributed ledgers, cryptocurrencies you could almost forget about IoT and big data, with the way people are talking about blockchain these days. The developments around the technology are proceeding at a breath-taking pace, and for retailers, if you were ignoring it or thinking youd wait until later to start paying attention, well, later has arrived. While blockchain is not going to revolutionize retail tomorrow, there are enough changes coming and enough real players involved in innovation and investment, that retailers need to pay attention to how it will impact their industry. Im not going to define blockchain or how it works. If you want that, I recommend this series of articles , as I found them to be extremely helpful (and basic). But whether you understand how it works or not, here are four big changes, in order from closest to coming to fruition, to farthest away. When your in-laws start talking about buying Bitcoins, its fair to say it has hit a level of general consumer awareness. Crypto-currencies have the potential to solve some real problems in the consumer financial world. In a McKinsey interview , Liana Douillet Guzman, the senior vice president for growth at Blockchain, said 2.5 billion people are currently outside of a financial system, including 1 in 12 Americans. The transaction costs of being outside that system can be very high, especially when youre talking about immigrants sending money back home. Douillet Guzman cited an example of someone sending $200 to the Philippines, where the transaction fee might be as high as $12 Continue reading >>

Five Ways Banks Are Using Blockchain

Five Ways Banks Are Using Blockchain

Clearing and settlement, trade finance and syndicated loans are ripe for modernising What was mispronounced? Optional: help us by adding the time Give us your feedback Thank you for your feedback. Barely a day goes by without a fresh announcement about how banks are seeking to use blockchain technology to transform sizeable chunks of their business. Combining shared databases and cryptography, blockchain technology allows multiple parties to have simultaneous access to a constantly updated digital ledger that cannot be altered. The technology, which underpins cryptocurrencies such as bitcoin, was initially treated with scepticism by banks. However, this has changed dramatically. Blockchain isthe hottest buzzword in the sector, even if the recent flurry of cryptocurrency fundraisings via "initial coin offerings"is attracting intense regulatory scrutiny . Blockchain firms raised more than $240m of venture capital money in the first six months of2017, much of it from banks, including $107m raised by R3, the New York firm owned by 40 of the world's biggest lenders. That follows an almost doubling of venture capital investment in blockchain firms last year to $367m, according to KPMG's Pulse of Fintech Q2 report. Many of the new ventures by banks involve them setting up a consortium of like-minded companies or carrying out a "proof of concept" to test the potential of the new technology. In almost all cases there islittle to show in terms ofcommercialsignificance. So which the areas of bankingstand a serious chance of being transformed by blockchain? The Financial Times has spoken to almost a dozen bankers, consultants and analysts to come up with five areas of the industrymost likely to see aneffect. It is not the sexiest area of banking, but the tangled webthat records lo Continue reading >>

Improving The Banking Consumer Experience Through Blockchain Technologies

Improving The Banking Consumer Experience Through Blockchain Technologies

Blockchain technology rose to prominence as the framework that enabled bitcoin to become a virtual alternative to physical currencies around the world. However, it is now bringing innovation well beyond bitcoin and driving important developments in the banking and financial industries. Major financial companies are investing in blockchain in hopes of building innovative banking services and powerful mobile payments solutions as ways of upgrading the consumer experience. Blockchain functions as a public ledger system, which provides additional security and dependability for payments made through the system. The ledger records and verifies all transactions made through the system, which is how bitcoin became such a successful cryptocurrency. Although it is an unregulated currency, it benefits from highly secure payments systems that surpass even what some financial institutions can offer. The technology is also highly amenable to international payments and mobile banking, and it doesnt require third-party assistance to facilitate transactions another feature that further reduces the risk of a security breach. For banks, though, the most attractive feature is its ability to save billions of dollars in processing costs. Stay on top of the latest mobile news and insights. As Business Insider noted, many major banking institutions are drawn to blockchains ability to power more efficient banking practices. There is great financial incentive to do so. Experts estimate that blockchain could save banks up to $20 billion every year in processing costs by 2022. Banks will be able to simplify their payment processing and become more efficient, reducing unnecessary expenses, combating fraud and accelerating the time frames for these transactions. Blockchain reduces the dependence on Continue reading >>

Blockchain For Banking: Big Opportunity Or Big Hype?

Blockchain For Banking: Big Opportunity Or Big Hype?

Blockchain for banking: Big opportunity or big hype? byOlga Artyushina,Marketing Communications Specialist,Qulix Systems Constantly growing competition and the need to keep pace with technological trends are forcingbanks to maintain an open mind in regard todigital innovation. That said, the banking industry has always tended to be conservative and extremely cautiouswith any kind of experimentation. This is certainly true of blockchain. However it is also true that banks are recognizing that this new technology does have applicability, and that it cannot be ignoredcompletely. A lot has been said about blockchain, mainly as it relates to the openness of the technology and cryptocurrencies based on it. But blockchain can be also implemented for traditional banking. For example, it can be used to create a transparent system for payments tracking. In fact, the opportunities to use blockchain technology in the financial industry are enormous. For instance, the blockchain could make it possible to view a customer's payment history in real time and thus judge eligibility for loans. The technology is also perfectly suited for investment banks obligated to perform their own "Know Your Customer" checks. In 2016, according to figures from Statista, 60 percent of surveyed financial companies worldwide were planning to use blockchain for international money transfers. Nearly one-quarter (23 percent) named security clearing and settlement as intended uses, while 20 percent of respondents saw opportunities to use blockchain in their Know Your Customer and anti-money laundering activities. Currently, we use a financial intermediary, e.g., a bank, to perform financial transactions. In contrast, blockchain enables consumers and providers to communicate directly with each other, eliminat Continue reading >>

Blockchain In Banking: Moving From Hype To Reality In 2017

Blockchain In Banking: Moving From Hype To Reality In 2017

Blockchain in Banking: Moving from Hype to Reality in 2017 Blockchain in Banking: Moving from Hype to Reality in 2017 Blockchain has been a topic of discussion ever since itsinception in 2009 as the underlying technology for Bitcoin. The industry hasseen intense debate and deliberation on the potential of blockchain, with manyclaiming, that it is as foundational, as the internet. Some banks state thatthey have moved past deliberation stage on blockchain, and are starting proofof concepts around this technology. As with any disruptive technology, there are questions inits wake where do we stand as an industry with respect to blockchaintechnology after eight years? How much of blockchain is still hype and how muchof it is now a reality? What is the way forward with this technology? To findanswers to these questions, Infosys Finacle partnered with Lets Talk Payments(LTP) on a research surveying more than 100 business and technology leaders from over 75 financialinstitutions. When it came to investing in this technology, 50% of thebanks surveyed have already invested in blockchain technology, or will do so in2017. In terms of degrees of adoption of blockchain technology, 15% of thebanks are innovators, 35% are early followers. The rest (50%) that are waitingfor the technology to mature, are late adopters. While average investment inblockchain projects in 2017 is expected to be $1 million, the innovators havealready invested funds over $10 million. These investments not only supportblockchain initiatives, but also explore use cases beyond the traditional realmof cross-border remittances, clearing, and settlement. Banks are now moving towards commercial adoption, and one inevery three banks expects to see commercial adoption by 2018. While 50% of thesurveyed banks expected t Continue reading >>

Tech Plays Larger Role In Retail Banking | Wilmingtonbiz

Tech Plays Larger Role In Retail Banking | Wilmingtonbiz

By Jenny Callison, posted Jan 26, 2018 Richard DeCrescente, regional vice president of Alliance Credit Union, demonstrates the credit unions technology bar. Technology financial technology specifically figures prominently in the retail banking industrys view of this years major trends. There are references to how such developments as the internet of things, data analytics and blockchain technology will likely affect banking. In December, The Financial Brand published its Top 10 Retail Banking Trends and Predictions for 2018. The publications seventh annual study draws from the trends prioritized by a panel of 100-plus global financial services professionals it surveyed. The three trends ranked highest by that panel also resonated strongly with several local financial professionals. Those three priorities were Removing friction from the customer journey, Expanding the use of data and advanced analytics and Improving multi-channel delivery. Those are priorities for local financial institutions as well. With consumer-focused companies like Amazon and Netflix offering seamless digital experiences, customers expect their financial institution to offer the same efficient, digital and personalized service, said Kendra Tolley, head of retail product at financial software company nCino. Tolleys comments referenced the importance of data analytics and well-designed software to providing that kind of service. The common link between the studys areas is the important integration of advancing digital technology and how it impacts bank operations, interfaces between systems, and most importantly, promotes a consistent, high-quality and reliable client experience that all consumers of financial services demand, said BB&Ts Wilmington market president Charlie Mattox. Consistent service Continue reading >>

Bitcoin And Blockchain: Poised To Blow Up Retail Banking

Bitcoin And Blockchain: Poised To Blow Up Retail Banking

Bitcoin and blockchain: Poised to blow up retail banking by Aziz Bin Zainuddin, founder and chief crypto officer, Master The Crypto Some have dismissed blockchain and cryptocurrency as a fad that spells too much trouble for governments to become a mainstay in our everyday lives. Others believe it presents too many advantages for businesses and consumers for it to disappear. Either way, the technology is too revolutionary for banks to ignore. Here is a roundup of how blockchain works and how banks might utilize it in the future. Bitcoin is a borderless decentralized digital currency that was invented in 2008. Its founder, known only by the pseudonym Satoshi Nakamoto, cultivated it partly in response to the global financial crisis that unfolded in the same year. One of Nakamoto's primary goals was to create a currency with a value that couldn't be affected by quantitative easing. To this end, he created an automated mining system that ensures there will only ever be 21 million bitcoins in existence. This means that the value of bitcoin will always be based on supply and demand. Bitcoin's borderless nature meant that overseas transactions would be subject to much lower fees than those charged by banks. Bitcoin transactions are stored in an immutable decentralized ledger called the blockchain. Instead of existing on a single server, it exists on every computer that can connect to the internet. The decentralized nature ofblockchain makes it more secure and reliable than traditional banking databases, as there is no single database that could to be compromised by hackers or suffer from system failure. Blockchain transactions are pseudonymous and there is no central authority that can ban anyone from making bitcoin transactions. The advantages of bitcoin over fiat currency ha Continue reading >>

Blockchain: Why It Is The Future Of Technology And Banking

Blockchain: Why It Is The Future Of Technology And Banking

Blockchain: Why It is the Future of Technology and Banking Blockchain: Why It is the Future of Technology and Banking Blockchain: Why It is the Future of Technology and Banking Bitcoin is the flavour of the year, polarising many investors, and even laymen, who do not know its real benefits. Despite fears and concerns, the cryptocurrency is considered a great asset to invest in. The blockchain technology is central to bitcoins success. Most of the doubters rhetoric revolves around bitcoin being in a bubble and lacking intrinsic value. However, many critics misunderstand the concept of bitcoin. More pressing is that some people feel that cryptocurrencies, such as bitcoin, Ethereum and Litecoin, have enabled a greater movement of transactions on the black market for money laundering, terrorism and trafficking. In addition, cryptocurrencies provide additional loopholes for money to be laundered due to its lack of regulation by a verified third party. Many Adam Smith fans and traditional economists feel that the bitcoin hype would eventually pass like the Dutch Tulip Mania bubble that took place from 1634 to 1637. Although the Dutch love affair with tulips during the mid-1600s was considered to be the first recorded financial bubble, the Tulip Mania of 1636-1637 was an episode in which tulip bulb prices were propelled by speculators to incredible heights before collapsing and plunging the Dutch economy into a severe crisis that lasted for many years. According to Allan Bellows, successful Dutch tulip bulb traders the archaic counterparts to the day traders of the dotcom bubble in the late 1990s and the house flippers of the mid-2000s US housing bubble could earn up to 60,000 florins in a month, approximately $61,710 today. Jesse Colombo also went on to highlight that the: T Continue reading >>

Blockchain In Retail Banking

Blockchain In Retail Banking

Fully automated identity checks when opening an account? Automatic immobilizer activation in leased cars if an installment has not been paid? International bank transfers credited to the recipients account within seconds? Sounds like science fiction? Yes, but blockchain has brought us one step closer to this vision. The topic of blockchain should not be missing at any innovation event or in any fintech blog todayits fields of application are however still limited. A previous BankingHub article has broached the topic of What is the blockchain? while this article will tackle the question of What is the purpose of the blockchain?. We will particularly cover three different groups of opportunities for applying the blockchain in retail banking: identity management, contract management and payment transactions. Authenticating customer identities is a frequent task in the relationship between banks and their customers and entails considerable efforts for both sides. Know Your Customer principles and anti-money laundering standards do not only require ID checks of new customers but also frequently involve a substantial review of business relations. Different solutions are currently used including a manual check by bank clerks, mailing copies of IDs as well as modern processes like video chat via IDnow or WebID . However, none of these solutions are ideal for banks or customers. When opening a new account, customers need to restart such a procedure from scratch and a prior authentication, e.g. from other banks, cannot be reused. This is where the immutability of blockchains comes into play. In art trade, identity checks are used to allow collectors to verify the authenticity of a work of art quickly and efficiently. In the digital world, these solutions work like a digital sign Continue reading >>

Opportunities Beyond Hacking: Retail Banking In Blockchain

Opportunities Beyond Hacking: Retail Banking In Blockchain

Home Articles Opportunities Beyond Hacking: Retail Banking in Blockchain Opportunities Beyond Hacking: Retail Banking in Blockchain Bitcoin accepted sign in the window of Kafi Schoffel, a coffee bar in Zurich that accepts Bitcoin as a means of payment and houses a Bitcoin ATM. Zurich, Switzerland, January 2, 2015. thamerpic/iStock It has been an incredible year for Bitcoin and cryptocurrencies. The price of Bitcoin increased from $963 at the beginning of 2017 to more than $4,300 by August, an annualised return of 540%. Bitcoins growth in the past five years has been equally incredible: If you invested $2,000 in 2012, your bitcoins would be valued at over $1m today. Its market capitalisation the value of all Bitcoins in circulation stands at $75bn. Meanwhile, cryptocurrencies have grown beyond Bitcoins to a large universe of altcoins , as they are collectively called, which purport to be superior alternatives. For instance, Ethereum is an altcoin that claims to enable smart contracts and a world computer that can build corporations as decentralised autonomous organisations on their platform. The altcoins growth trajectory is even steeper than that of Bitcoin. At the beginning of 2015, there were 10 cryptocurrencies with a market cap of more than $10m each, and collective market cap of almost $900m . Today, there are 14 altcoins each with a market cap over $900m, and the market cap of the top 10 altcoins is $70bn. An index fund of the top altcoins would have earned an annualised return of 510% over the past three years, and orders of magnitude higher than the major stock indices. Given the financial returns and an aggregate market cap of more than $150bn, the recent flood of news and interest in cryptocurrencies is unsurprising. However, what are the technologies underly Continue reading >>

Blockchain Technology For Banks | Accenture

Blockchain Technology For Banks | Accenture

How banks are building a real-time global payment network One of the most talked-about topics in the financial services industry today is blockchain. If fully adopted, it will enable banks to process payments more quickly and more accurately while reducing transaction processing costs and the requirement for exceptions. However, to capitalize on this potential, banks need to build the infrastructure required to create and operate a true global network using solutions based on this transformative technology. Our survey found that blockchain use is, indeed, top of mind among banking executives who lead payments businesses. Perhaps most critically, the survey revealed what executives believe must happen for blockchain to gain prominence globally. Thirty-two commercial banking professionals were interviewed to learn about the potential of blockchain / distributed ledger technology. Banks are definitely interested in blockchain. However, most banks we surveyed are still in the early stages of adoption, with about three-quarters either involved in a proof-of-concept, formulating their blockchain strategy, or just beginning to look into it. Regardless of progress, the most prevalent use cases banks are studying involve intra-bank cross-border transfers. Cross-border remittances, corporate payments, and inter-bank cross-border transfers are receiving comparatively less attention. But wherever they hope to deploy blockchain, executives expect a wide range of benefits, including lower costs, quicker settlement, fewer errors and exceptions, and new revenue opportunities. Nine in 10 executives said their bank is currently exploring the use of blockchain. A global network is critical to helping banks use blockchain to help transform payments at scale and help reduce risk of failure Continue reading >>

The Missing Link: Four Ways Blockchain Will Change The Face Of Retail Banking

The Missing Link: Four Ways Blockchain Will Change The Face Of Retail Banking

The missing link: Four ways blockchain will change the face of retail banking RushdAverroesis the founder and chief executive ofBABB. One of the most innovative and divisive aspects of blockchain technology is the use of cryptocurrencies (Source: Getty) It's no secret that the retail banking system is in dire need of an upgrade. There is a strong case to be made for a decentralised banking system based on blockchain. With high barriers to entry (particularly in the financially vulnerable and unbanked section of the market), and the security concerns around centralised stores of money and data, it is clear that the existing banking system no longer serves the evolving needs of many retail customers. Imagine a way of providing banking and financial services that does not depend upon a central authority, but instead utilises a decentralised marketplace. Decentralising operations can safeguard people from the inherent problems of trust and the inefficiencies within the current retail banking industry. No recent innovations have yet been leveraged to provide a comprehensive, alternative banking solution to combat financial exclusion. But a blockchain-based bank can do this. Financial exclusion is a worldwide issue. In fact, two billion adults in the world have no access to formal banking services. A 2017 survey from the Financial Conduct Authority found, that among the financially vulnerable, one million UK adults are unbanked. Over-reliance on banks also poses security and privacy concerns. For example, US credit information firm, Equifax, had a major data breach last year, which compromised data of 143m US consumers and 694,000 UK customers. Its clearly time to embrace blockchain technology and cryptocurrencies as part of the everyday. In doing so, we will also find solut Continue reading >>

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