IBM says 15% of big banks worldwide and 14% of major financial institutions will be using Blockchain technology by 2017.
The tech giant conducted and released two studies, “Leading the Pack in Blockchain Banking: Trailblazers Set the Pace” and “Blockchain Rewires Financial Markets: Trailblazers Take the Lead,” which surveyed 200 global banks and financial institutions. Though a lot of the banks are still testing the waters, IBM reported that about 66 percent of those surveyed plan to have incorporated Blockchain into their commercial products within the next 4 years.
In an IBM press release, Likhit Wagle, Global Industry General Manager, IBM Banking and Financial Markets, said that being early birds in the Blockchain scene promises many advantages: “To start, first movers are setting business standards and creating new models that will be used by future adopters of Blockchain technology. We also discover that these early adopters are better at anticipation of disruption, fighting off new competitors along the way.”
Because Blockchain is a distributed database (as opposed to one that is stored in a central system) and effective against tampering, it is the ideal transacting platform for banks and financial institutions. Changes to records made and observed in real-time would translate to lower costs, more efficient operations, and the elimination of pesky mishaps that happen under the current banking technology.