Note from the CEO: Sweet music to an investment banker’s ears; MONEY! Yeah baby, like billions of dollars. Accenture claims investment banks could save $12 billion a year with blockchain. Hmmmmmm, so Goldman Sachs gets $11 billion and all the others $1 billion. Sounds normal.
Accenture has done a report that actually puts some hard dollar numbers on what potential cost savings might look like if investment banks step up and adopt the blockchain technology. Based on cost data from eight of the worlds ten largest investment banks no less. This is really exciting and shows the possibilities of significant savings which will, of course, have some positive effects on earnings. Sweet.
“Blockchain technology could help the world’s largest investment banks cut their infrastructure costs by between $8 to $12 billion a year by 2025, according to a report by Accenture.
The report, published on Tuesday jointly with benchmarking firm McLagan – part of consultancy Aon Hewitt – is based on an analysis of cost data from eight of the world’s ten largest investment banks, and provides a rare concrete estimate of blockchain’s potential savings.
Originally used to underpin digital currency bitcoin, blockchain is a distributed record of transactions, or other data, maintained by a network of computers on the internet without the need for approval from a central authority.
As it creates a shared “golden record” of data that is virtually tamper-proof, it obviates the need for reconciliation and could prove a helpful resource for auditing.
Banks and other large financial institutions have been ramping up their efforts to develop blockchain-based technology to run some of their most burdensome back-office processes, such as the clearing and settlement of securities.