A new study has found that blockchain deployments will enable banks to realise savings on cross-border settlement transactions of more than $27 billion by the end of 2030, reducing costs by more than 11% per on-chain transaction.
According to the research, The Future of Blockchain: Key Vertical Opportunities & Deployment Strategies 2018-2030, banks that integrate blockchain will achieve cost reductions not just in payment processing and reconciliation, but in treasury operations and compliance.
Indeed, the research argues that in compliance, automation of identity/money-laundering checks, allied to capability of the blockchain to verify the digital identity of an individual, should enable savings of up to 50% of the existing costs base within a few years.
However, the research cautioned that the need to parallel-run blockchain-based services with legacy systems would mean that savings would not be realised for several years after initial deployment, with annual cost reductions not reaching $1 billion per annum until 2024.
Food Export to Reap Benefits
The new research identified potential savings for consumers and enterprises across a range of industries, from reduced fees for home buyers to fraud in the food export trade, where it estimated that blockchain deployments would reduce the cost of fraud by nearly 50% within 12 years.
IBM Heads Innovation Indices
Meanwhile, the research also assessed the extent to which 34 leading blockchain providers were positioned to deliver innovative solutions and achieve growth. The research includes three Innovation Indices (Digital Identity, Provenance and Financial Services) based on quantitative and qualitative assessment of product offerings, R&D activities and future potential. In each index IBM emerged as a market leader.
According to research author Dr Windsor Holden, “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.”