BlockChain adoption by Banks

“The technology will only work if everyone adopts it and trusts it.” Blockchain and distributed ledgers have an enormous potential for future Banking. As real-time, open-source and secure & trusted platforms that transact data and value, can help banking institutions not only reduce the cost of processing payments, but also create new customer friendly products and services that can generate new avenue for revenue generation.

The most important factor in blockchain’s potential into reality is a real time collaborative effort among some major banks like HSBC,ING,Citibank to create the network required to support the exchange of global transactions. Banks institutions must see the bigger picture and work together—and with non-banks—to help define the structure that is universally accepted, ubiquitous global transaction system that can transform how banks exchange transactions.

The network is a most important success factor in blockchain adoption, but there are others. Another important one is generating awareness of for blockchain integration and implementation—something that half of the banking institutions are not focusing on. Another reason banking institution could be hesitant to embrace blockchain.

Beyond these factors is something more fundamental: the need to educate key stakeholders within the organization on blockchain’s enormous potential benefits and positive impacts. Finally, executives said actually applying blockchain successfully to payments will require fostering an uncommon coordination among banks—which is vital to generating the positive network effects that make blockchain so compelling.

A global network is critical to helping banking institutions use blockchain technologyt to help transform payments at mega scale and help reduce the risk of failure. The most effective network should have two defining characteristics:

1. Include the necessary defined rights, obligations, controls, and standards.
2. Quick and efficient onboarding process that enables banking instutions to essentially connect into the network for both existing and future pipeline.

However, to capitalize on this enormas potential, banking institurtions need to build the infrastructure required to create and operate a truly global network using solutions based on this transformative technology.