Seven of the most promising use cases for blockchain in the financial sector alone hold the potential to shave $80-110bn in costs for the industry globally, according to a report by consultant McKinsey. The seven "genuine use cases" identified by McKinsey include payments; OTC derivatives; trade finance and KYC/AML (see Table 1). Most of the positive impact from applying blockchain in financial services is likely to be come from the payments and capital markets arenas, says the study, published in early January. A survey of senior executives in financial institutions last year by the consultant indicates that sector players are at different stages in their efforts to exploit blockchain, with 70% of financial organisations still in the early stages of experimentation. Most executives surveyed are of view the technology will not begin to have a material impact on their operations for at least five years.
Established financial institutions and fintechs are increasingly working together. LONDON -- PwC says the financial services establishment has moved from viewing fintech startups as an amusing aside to seeing them as crucial collaborators, with a huge proportion hoping to partner with new innovators in the future. In its latest Global Fintech Report, published on Thursday, PwC says that 82% of incumbents it surveyed plan to increase collaboration with fintech companies over the next three to five years. "Mainstream financial institutions are rapidly embracing the disruptive nature of fintech and forging partnerships in efforts to sharpen operational efficiency and respond to customer demands for more innovative services," PwC says in its report. The "Big four" consultant surveyed 1,308 financial services and fintech executives from around the world for its latest report.
At a time when traditional banking institutions are just beginning to embrace the potential of collaboration with fintech firms, organizations like Google, Amazon, Facebook and Apple (GAFA) may disrupt the entire banking ecosystem once again. Subscribe to The Financial Brand via email for FREE!The banking ecosystem is in a state of transformation. New fintech entrants are coming into the marketplace regularly, while traditional providers are trying to adjust to the realities of digitalization, advanced technology and increasing consumer demands. Moving from a competitive perspective, traditional financial institutions and fintech firms now understand that collaboration may be the best path to long-term growth. Understanding the opportunity and being able to take action on this opportunity are not the same thing, however.
A refreshing take on modern IT infrastructure built around embracing change, empowering mobility, enabling global collaboration, and encouraging unlimited innovation. Your message has been sent. There was an error emailing this page. Today, the financial services industry is expected to provide anytime, anywhere customer service to help meet its clients' needs. Contact center agents are on the front lines and expected to deliver a seamless experience across every channel, every time.