Expect commercial adoption from 2018
London, UK – February 07, 2017: Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys (NYSE: INFY), along with its partner Let’s Talk Payments (LTP), today released a global survey report – “Blockchain Technology: From Hype to Reality”. According to the report, over 80 percent of bankers surveyed expect to see the commercial adoption of the technology by 2020, with nearly half (50 percent) of the financial institutions already investing or planning to invest during 2017. This announcement builds on the recent announcement by Emirates NBD and ICICI Bank on the deployment of blockchain technology in international remittances and trade finance.
The aim of the study, which included a survey of more than 100 financial services professionals, was to understand the sentiment of blockchain technology in the following areas:
- The technology’s current understanding in the banking industry
- Adoption strategies and investments being pursued
- The opportunities and challenges that the industry is dealing with
- 33 percent of respondents expect to see commercial blockchain adoption by 2018, while a majority (nearly 50 percent) see mainstream adoption by 2020
- According to the survey, the average investment in blockchain projects in 2017 is expected to be about USD 1 million
- Majority of banks, about 69 percent, are experimenting with permissioned blockchains
- About 50 percent of the banks are either working with a FinTech start-up or technology company to augment their blockchain capabilities, whereas another 30 percent are opting for the consortium model
- According to the study, 51 percent of executives driving the blockchain initiatives are either Chief Technology Officers or Chief Innovation Officers
- The study confirms that the blockchain roll out would be prioritized in business areas where it can significantly improve transparency, automate processes across enterprises as well as reduce settlement and transaction time
- The study further revealed that the top five use cases that are expected to go to production are: cross-border payments, digital identity management, clearing and settlement, letter of credit process and syndication of loans. These use cases scored more than 3.2 on a scale of one to five, wherein one being the least prioritized use case for commercial adoption and five being most prioritized
The full report can be downloaded here.
Sanat Rao, Chief Business Officer and Global Head, Finacle, said, “This research reaffirms our belief that the blockchain technology has potential to help banks reimagine banking processes. The technology can help banks automate inter-organization processes, significantly improve transparency and reset existing operational benchmarks. Several progressive organizations have already executed pilots to validate these propositions. We believe, in the coming quarters, the industry will experience greater momentum towards rolling out lab-pilots to real-life use cases.”
LTP surveyed 100 business and technology leaders from 75 institutions ranging from regional banks to multinational banks on behalf of Infosys Finacle.
About Infosys Finacle
Finacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned subsidiary of Infosys. The solution helps financial institutions develop deeper connections with stakeholders, power continuous innovation and accelerate growth in the digital world. Today, Finacle is the choice of banks across 94 countries and serves over 848 million customers – estimated to be nearly 16.5 percent of the world’s adult banked population.
Finacle solutions address the core banking, e-banking, mobile banking, CRM, payments, treasury, origination, liquidity management, Islamic banking, wealth management, and analytics needs of financial institutions worldwide. Assessment of the top 1000 world banks reveals that banks powered by Finacle enjoy 50 percent higher returns on assets, 30 percent higher returns on capital, and 8.1 percent points lesser costs to income than others.
To know more, visit www.finacle.com
About EdgeVerve Systems Ltd
EdgeVerve Systems, a wholly owned subsidiary of Infosys, develops innovative software products and offers them on premise or as cloud-hosted business platforms. Our products help businesses develop deeper connections with stakeholders, power continuous innovation and accelerate growth in the digital world. We power our clients’ growth in rapidly evolving areas like banking, digital marketing, interactive commerce, distributive trade, credit servicing, customer service and enterprise buying.
Today EdgeVerve products are used by global corporations across financial services, insurance, retail and CPG, life sciences, manufacturing, and telecom. Finacle, our universal banking solution, is the choice of financial institutions across 94 countries and serves over 848 million customers – estimated to be nearly 16.5 percent of the world’s adult banked population.
To know more, visit www.edgeverve.com
LTP is a global research and content platform for innovation in emerging financial services and commerce, now broadly called FinTech. LTP has been at the forefront of bringing the most current topics and strategies for FinTech innovation to a cross-section of stakeholders via its proprietary research, the daily industry newsletter and MEDICI, a FinTech discovery and engagement platform.
LTP products and services are designed to provide deep domain-specific depth and comprehensive coverage in an easy-to-consume format for today’s rapidly changing open innovation environment.
MEDICI, powered by LTP, allows FinTech start-ups, banks & other financial institutions, investors and strategic stakeholders to discover engage and interact with each other on a rich, contextual, digital platform that is curated by LTP analysts. MEDICI is a subscription-based offering to the industry and is currently available by invitation only.
LetsTalkPayments.com is the fastest growing global destination for news, insights and data-driven research in emerging financial services. LTP defines and embraces the New Global FinTech. With engaging interactive content covering daily news, analytical opinion, podcasts, webinars, interviews, research reports and even e-books, LTP has been called the ‘watering hole’ for industry insiders, business leaders, FinTech investors, and entrepreneurs.
Contributors to LTP are spread out globally to publish stories as they unfold, from various segments of this interconnected space, ranging from consumer financial services, lending & banking to mobile- and cloud-enabled payments & commerce, also including the latest shopping-related innovations in advertising, fashion technology, smart devices and wearables. LTP subscribers rate its content as fiercely independent, thought provoking and always up-to-date, in a way that continues to inform, engage and inspire every day.
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