BANKING ON BLOCKCHAIN 4 OUR RESEARCH To fully understand the operational impact of blockchain, operational cost data from eight of the world’s largest we conducted a study in conjunction with McLagan. investment banks (based on revenues) against our A world-class capital markets benchmarking provider, proprietary Accenture High Performance Investment McLagan performs comprehensive financial benchmarking Bank model. This gave us visibility into where blockchain of the largest banks every year. It uses granular cost data is likely to have the most impact across the entire spectrum sourced directly from the general ledgers of participating of front-to-back processes and operating metrics of an banks. In this study, we mapped McLagan’s aggregated investment bank (see diagram 1). DIAGRAM 1 © ACCENTURE HIGH PERFORMANCE INVESTMENT BANK MODEL – BLOCKCHAIN IMPACT STRATEGY DELIVERY CLIENT SERVICE Corporate Strategy Business Unit Strategy Sell / Cross Sell Products & Services Business Service Provisioning Operating Strategy Account Management Service Usage Tracking & Control CORE INVESTMENT BANK RESEARCH TRADING CORPORATE FINANCE Research Advisory Structure Product Advisory Analytics Trading Risk Management Issuance Research Production Pricing Complex Finance y Quotes & Orders y Trade Execution s s edits ed o Economic stment / s atie y ets ate o Economic stment / e ed oducts e v aluation Maturity ix v aluation Maturity Macr Sector / CompanInV Comm-oditieEquitieEquityDerivFIncomeFX &MoneMarkIR & CrDerivStructurPrMacrSector / CompanInV CROSS PRODUCT PROCESSING Conirmations Cash Management & Payments Inventory Management Data Management Clearing & Settlement Revenue Accounting & Control Collateral Management Trade Lifecycle Management CORP. CORE ASSETS LIABILITY FINANCE RISK MGMT REGULATORY TECHNOLOGY RESOURCE HUMAN MGMT MGMT RESOURCES Business Decision Market Risk Audit IT Strategy Treasury Support Procurement Organization Credit Risk Legal & Application Management Balance Sheet Financial Control Compliance Development Third Party Operational Risk Management Talent External Reporting Application Management Controlling Liquidity Risk Management & Reporting HR Services & Cost Accounting Administration & Reporting Involvement of Infrastructure Central Counterpart HR Operations & Support KEY DISRUPTION = 70%+ COST SAVINGS IMPACTED / SUPPORTED = 25-50% OUT OF SCOPE IMPACTED FUNDAMENTALLY = 50-60% NO OR LIMITED IMPACT = 10%+