Nine out of 10 Major Banks in North America & Europe are Exploring the use of Blockchain Technology for Payments, Accenture S...
October 25 2016 - 11:35AM
Business Wire
To Drive Adoption, Collaborative Network
Supporting Global Payments Needed
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 (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 enterprise 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161025006246/en/
AccentureMelissa Volin, + 1 267 216
1815melissa.volin@accenture.comorJoanna R. Vos, + 44 203 626
2407joanna.r.vos@accenture.comorSean Conway, + 1 917 452
7116sean.k.conway@accenture.com
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