Financial incumbents are mystified by financial technology, and one shining example are the “existential threats” from blockchain innovation.
The Deloitte report states: Many areas within banking and capital markets are experiencing serious existential threats. As the industry is being transformed, there is uncertainty around what the future of the banking industry will look like over the next decade.
The latest report states that throughout history, trusted intermediaries have been needed to help with financial transactions, especially if they require more complex actions.
Deloitte says that blockchain technology is challenging this norm and in light of other technologies it is “forcing traditional players to reexamine their role in the payment ecosystem.” The multinational professional service provider says it can “unequivocally say” the payments industry will look pretty different in the future. “Banking reimagined” underlines that these technologies have the potential to transform the economy and the way we transact, explaining: In all likelihood, blockchain innovations could be the most transformative, and we will likely see a number of real-life applications of blockchain applied to payments, beyond digital currencies, in the next five years.
Keeping Up with InnovationDeloitte has been writing reports on trending financial innovation for the past decade, calling these reports “outlooks.” One trend Deloitte has noticed after the financial crisis is that traditional financial institutions have faced a stricter regulatory policy since the economic downturn. Moreover, technology has reduced the entry barrier and has allowed new players to enter the game. Businesses and organizations using innovative blockchain techniques is one strong example of this financial change taking place.
achDeloitte is a multinational financial service, which earned a record of $35.2 billion USD in revenue in 2015. The company offers auditing, tax services, consulting, and financial advisory for institutions and individuals worldwide. Blockchain technology is something the company has focused on recently and has initiated various research programs and hosted some hackathons last year.
Back on November 6-8, 2015, Deloitte co-sponsored a large blockchain hackathon in Dublin with Fidelity Investments giving away €10k in cash prizes. The institution also hosted the Shanghai Blockchain Hackathon with participants who hacked away for prizes up to $30,000.
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