More than bitcoin, blockchain is interfering with the margins and business models of the finance world. The technology is also challenging our banking institutions’ longstanding platform as intermediaries.
Last year was particularly remarkable for the technology, attracting close to $1 billion in investments for both bitcoin and blockchain firms, according to industry reports. While some banks are excited and inspired by the innovation, there are many who apprehensively await the lesser known implications the emerging technology may have on their traditional business lines.
There are a handful of leaders already experimenting with the technology – they are benefiting from reduced costs and increased influence/reach; the end goal is to identify and eliminate inefficiencies found within the traditional system. Do expect to hear more about blockchain innovation labs and RD investments in the months to follow.
Banks are worried that their own innovations around blockchain will cannibalize existing revenue streams. Other factors, such as costs sunk into networks and legacy technology, make the decision to deploy blockchain even more difficult. Further, the new technology demands dramatic cultural shifts towards disruption and innovation from within…scary concepts to our friends in the traditional banking establishment. It is recognized that these are not simple, everyday obstacles or