Juniper Research, the leading analyst house in the field of digital commerce and Fintech’s recent study says by the end of 2030, blockchain adoptions will allow banks saving of more than $27 billion, minimizing its cost by somewhat 11% per on-chain transaction.
Additionally, the Juniper Research paper entitling “The Future of Blockchain: Key Vertical Opportunities and Deployment Strategies 2018-2030”, explain that banks which incorporate blockchain will obtain cost reductions not only during payment processing and reconciliation; but also with treasury operations and compliance.
#Blockchain deployments to save #Banks more than $27bn annually by 2030, with cost reductions not just in #Payments processing and reconciliation, but in treasury operations and compliance. #Fintech #Banking
— Juniper Research (@juniperresearch) August 1, 2018
Juniper Research is also a market intelligence firm, during the research which believes that by deploying the blockchain technology; financial institutions will stand to make savings.
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Indeed, the research proclaimed within the compliance, automation of identity and/or money-laundering checks, associated with the blockchain technology to confirm the digital identity of an individual, must provide savings of up to 50% considering the existing cost base in next few years.
According to the press release:
“[For example] the market capitalization of all the world’s stock markets is equal to $73 trillion, even small cost savings and efficiency gains can lead to significant business value for companies and industries that decide to introduce blockchain technology.”
However, the research warns that the requirement of running parallel blockchain-based services together with legacy systems would signify that savings for several years would not be considered after their initial deployment, with cost reductions annually not touching $1 billion per annum until 2024.
However, some banking departments will be able to generate larger savings. While incorporating compliance; for example, the money-laundering check automation using blockchain adoption is said to reduce the cost by up to 50% within 12 years.
Food Export to Enjoy Benefits
The research report acknowledges that major sectors besides banking will also reap the benefits from effective enhancements of blockchain deployment. The food export trade costs related with fraud would see the cut off somewhat by half within 12 years.
According to the research, IBM gains a stance as the blockchain innovation leader. The study mentions its research efforts on the qualitative assessment of R&D activities, product offerings, and the future potential. In each sector, IBM has proven to be a front-runner.
The research author, Dr. Windsor Holden says:
“IBM continues to demonstrate innovation and leadership across a range of verticals. Over the past 18 months, it has attracted dozens of corporate clients, with deployments now moving from proofs of concept and trial to full commercial rollout.”
Image Source: Juniper Research