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Banks are Expected to Start Using Blockchain Technology by Next Year

For banks eyeing blockchain technology, 2016 has been the year of tests, trials and proofs of concept. According to a research by IBM, some 15% of them could be running blockchain solutions in the wild by this time next year.

The technology giant's Institute for Business Value interviewed 200 global banks for a study entitled “Leading the Pack in Blockchain: Banking Trailblazers Set the Pace”.  It found 15% of bank respondents intend to have fully implemented, full-scale commercial solutions in 2017. Behind them, another 65% indicated they plan to have blockchain solutions in production over the next three years. About 80% of banks indicated trade finance, corporate lending and reference data have the greatest opportunity to improve using blockchain technology. Some 56% indicated regulatory constraints are among the top barriers to the success of blockchain implementation, followed by the immaturity of the technology and the lack of clear return on investment.

As part of the Hyperledger Project, IBM has been collaborating with financial services and technology firms to create a common blockchain fabric on which companies can build their own blockchain applications, such as logging transactions between banks and international businesses or allowing the two to share recordkeeping systems. Bluemix, IBM's cloud-based development environment, aims to help banks to identify fintech firms to work with, ensure those startups meet regulatory requirements and plug them into the banking platform without a complicated, expensive integration.

News Characteristics

Date : Sep 29, 2016
Region : North America
Industry : Banks
Function : Operations and IT
Sub-Function : IT Modernization/Transformation