Until recently, the world of finance was seen as a highly technical, highly regulated industry dominated by giant banks that resisted disruption (other than the occasional global meltdown). However, the finance industry is now riding an entrepreneurial wave, with blockchain at the helm.
From what Deloitte observe in the market, 2016 is the year which sees the move from the across EMEA to gain a clear understanding of their current plans and status with blockchain technology hype phase to prototype phase. They are predicting the development and launch of the first blockchain PoCs within the financial services industry at a company level and banks must respond to this. However, in this scenario, the majority of financial institutions interviewed seem unprepared to tackle the upcoming challenge.
Lack of accountability is the main reason that hinders organizations in embracing innovation, and blockchain is not different from this perspective, as affirmed by 46% of respondents in a recent survey by Deloitte.
Blockchain could represent the next big shift in technology over the next five years but the pace of innovation within financial institutions seems to be slow; for example very few banks have a blockchain lab. A radical change in culture is required to re-think banks' business models in order to prosper in the future. So banks must devote adequate focus and manpower if they are to keep up pace with the market, but, once established, focus must be on the true benefit rather than just exploratory. So which areas do banks see the most opportunity?