Financial Services Blog

With the prospects of blockchain’s impact, as evidenced by our in-depth analysis, there are steps you can take now to seize the opportunity.

In parts one and two of my series on our analysis of the potential impacts of blockchain, I described the long-term opportunities this distributed ledger technology may offer, and gave you an overview of the findings of our impact analysis. In this final post, I will detail specific ways in which investment banks can prepare themselves to reap the benefits.

Blockchain could deliver significant benefits

Blockchain is challenging industry players to fundamentally reimagine their data sharing processes. There is no turning back, especially considering the pronounced impact blockchain is likely to have in prompting investment banks to rearchitect current business models, operational functions and profitability profiles—in both the short and the long term. 

To fulfill the promises of blockchain, investment banks should rethink their strategies and approaches to various areas, including:

  • Workforce optimization
  • Data center requirements
  • Data storage
  • Networking
  • Security

Early adopters are likely to be in the best position to optimize costs, drive entirely new revenues and benefit from all that blockchain can deliver. Taking a lesson from past experiences with transformative technologies, investment banks have adopted the strategy of setting up in-house labs, joining industry consortiums, and funding or forming joint-ventures with firms fully invested in blockchain.

Leveraging blockchain

To reap the benefits of blockchain technology, start by accelerating your action plan. Here are the key issues to address:

  • Strategy—what is your strategy to evolve your business to the next level, and what combination of innovations will be key to achieving that strategy? Where will you find the most value?
  • Alignment—how do your multi-year investment plans align with how the available technologies, capabilities, and market offerings are developing? Are you investing/building within the limits of today’s capabilities or tomorrow’s potential?
  • Knowledge—are you plugged into the right industry, regulatory, and cross-industry innovation forums to stay informed and be an active player in shaping how the next period of innovation will play out to your best advantage?
  • Exploration—have you explored the human and technology resources required to support blockchain distributed ledger technology environments?

As I explained in this series, there is no doubt that blockchain technology could deliver significant benefits. While many parts of the investment banking ecosystem first need to align for distributed ledger technology to maximize its potential, some industry leaders are already demonstrating what is possible.

We recommend you start putting the pieces into place now. Doing so could allow you to achieve short-term wins as you build a more efficient, secure and cost-effective operating model to unlock sustainable gains, savings and long-term competitive advantages. 

The potential benefits of blockchain are undeniable—it’s up to you to make them a reality.

To learn more, access the complete Blockchain Value Analysis report and the report on Three technologies that are changing the financial services game

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