Blockchain: the next revolution in financial services?
Genevieve Wood
Marketing & Communications Strategist | Content Creator | AI Enthusiast | Aspiring Jewellery Designer | Serving UK & European Businesses |
By OM blogger Tracey Franks.
Fintech. Disruption. Transformation. The hyperbole surrounding the technological leaps in the financial services industry (among others) is gathering apace. Globally, institutions such as traditional banks, investment banks, brokers and securities exchanges are embracing the future and investing heavily in fintech – money, time and personnel.
Technology start-ups are emerging to take advantage of this zeitgeist and reaping the benefits of corporates and venture capital spending large. Accenture’s 2015 report The Future of Fintech and Banking: Digitally disrupted or reimagined? reported that global investment in fintech ventures tripled to US$12.21 billion in 2014.
One technology in particular is creating an increasing buzz – blockchain.
Blockchain technology enables institutions to securely trade and transact with each other directly, no middle-man. In theory, this should mean significantly reduced costs and speedier transactions. It potentially has more complex applications, both within financial services and other sectors.
It has the financial world very excited – so excited that Visa Inc. recently led a $30 million round of investment into one blockchain company.
Interviewed by Forbes magazine, NASDAQ Chief Executive, Bob Greifeld said, ‘[Blockchain] is the biggest opportunity set we can think of over the next decade or so.’
More locally, ASX chief executive Elmer Funke Kupper said of blockchain at last week’s results announcement, "We don't know where it is going to end, but we know it starts right here right now, in the ASX in Sydney, because we think we should lead the world with this – and know we can."
In the same way the internet revolutionised stockbroking, is blockchain the next big thing to revolutionise the financial services industry?
Strategic Relationships, Monetary Metals Dubai
9 年Very under-reported was the fact that the SEC ruled that pooled mining contracts are securities under the 40 Act (SEC vs. GAW Miners), so every mining pool is now out of compliance. And wait until they decide Bitcoin itself is a security: https://www.youtube.com/watch?v=vLU4B8L-ROc
Head of Strategy & Finance @niiio finance group | Mentor @ Accelerator Frankfurt | GAC member CFA Society Germany
9 年Charles, I understand your criticism but am not sure I get the point. Bitcoin blockchain is certainly not the way to go for the majority of users. The bitcoin network today is what Napster used to be in 2000. The technology is there but the ops model is not fit for standard users. So, having incumbents turn to the technology and try to make sense of it, where's the harm. If the majority of users follow your lead, then it's pointless anyway. But maybe there is value to be generated in the confluence of technology and market knowledge from existing players. Just maybe. But still worth an investigation, I believe.