Market intelligence firm Juniper Research has published the results of its blockchain study, with the findings showing financial institutions are set to save USD 27 billion annually by 2030 should they utilize the technology.
The cost reduction for cross-border settlement transactions is shown to be reduced by over 11% when deployed on blockchain.
#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
The Future of Blockchain: Key Vertical Opportunities & Deployment Strategies 2018-2030 study also investigates alternative areas where the technology could create more cost-effective practices, including in treasury operations. The savings applicable for banking departments varies; in areas of compliance, automated money laundering checks via blockchain could create a 50% price decrease in just a few years.
Internal banking legacy systems that will most likely be required to run alongside any blockchain tech services may, however, cause the savings process to take several years to be fully implemented. Estimated service cost savings are not expected to reach USD 1 million per annum until 2024.
5 industries benefiting from blockchain
Besides the banking industry, the report notes the benefits of utilizing blockchain technology in a number of other sectors, including food exports and trades, as has been seen in a number of cases already including in the Australian sugarcane industry. The report estimates a nearly 50% cut in the food industry’s costs associated with fraud.
Juniper Research has also released a free white paper detailing five industries that will benefit from blockchain, including land registry, healthcare, and the automotive sector, entitled ‘5 Industries That Will Fuel the Blockchain Boom’.
It splits the research into eight key regions, including the key challenges each industry will face on the way to adoption and the top movers and shakers of the blockchain sector in 2018.
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