A recent study by Bain and Company said that blockchain technology can significantly decrease bank transaction costs if implemented correctly.
The study said that “transaction banking revenues tend to be less volatile than other types of banking revenues, and bankers can cross-sell products, which is critical for client loyalty.” Additionally, the study revealed that:
“using this technology [blockchain], execution, clearing and settlement could occur simultaneously, minimizing liquidity and credit risks. Custody and other post-trade security services also are under threat from new technologies.”
Furthermore, the cost for trade financing to operate fully could be halved, and even go down by a staggering 80 percent by integrating blockchain technology “if adopted in the right way by participants in the trade ecosystem.” Such cuts would come from notable acceleration in processing speed. The study even claimed that settlement, billing, and payment could accelerate by up to three, even four times faster.
Dr. Christian Graf, Bain’s partner and bank expert, iterated in a press release that in summation, banks have to face the fact that there is already a forthcoming upheaval in finance, as was with the telecommunications industry over the past years. He even claims that smaller and “purely transaction-driven fee structures will be replaced in the future by flat fees for the provision of comprehensive solutions.”