BANKING ON BLOCKCHAIN 3 WHY THE BUZZ ABOUT BLOCKCHAIN? Blockchain – a catchall phrase for distributed ledger technology – is a new type of database system which enables multiple parties to share access to the same data, at virtually the same time, with an unprecedented level of confidence. Currently, data reconciliation sits at the heart of most business models. However, because everyone maintains their own data, the process is beset with inefficiencies, such as the need for different parties to constantly message data back and forth between them to get things done. Blockchain, by contrast, could enable a progression from today’s multiple and sequential data reconciliation models to a much more efficient process in which reconciliation is an integral part of the transactional process. THE OPPORTUNITY The long-term opportunity for banks is to repoint key operational, risk and finance systems to blockchain-based, shared data platforms. This would enable decommissioning of large parts of their process and data infrastructure. While getting to this end-state will take time and multiple iterations, significant potential for cost and efficiency gains should continue to fuel interest and investment. We believe capital Although there have been some estimates of the value blockchain could create, we believe capital markets markets leaders leaders need a more detailed impact analysis to assess the business case for blockchain. This is especially critical need a more detailed for C-suite executives under pressure to constantly evaluate the potential of multiple emerging technologies. With impact analysis to legacy systems to consider, regulation to comply with and stakeholders to convince, how can you be sure that backing assess the business blockchain will deliver the competitive advantage and shareholder value you need? case for blockchain.