[2017-01-17] Firstpost: Accenture says blockchain tech can cut costs for IBs

[polynesia]

Accenture report says blockchain technology can cut costs for investment banks by $8 to $12 billion a year

http://tech.firstpost.com/news-analysis/accenture-report-says-blockchain-technology-can-cut-costs-for-investment-banks-by-8-to-12-billion-a-year-357952.html

Blockchain technology could help the world’s largest investment banks cut their infrastructure costs by between $8 to $12 billion a year by 2025, according to a report by Accenture. The report, published on Tuesday jointly with benchmarking firm McLagan – part of consultancy Aon Hewitt – is based on an analysis of cost data from eight of the world’s ten largest investment banks, and provides a rare concrete estimate of blockchain’s potential savings.

Originally used to underpin digital currency bitcoin, blockchain is a distributed record of transactions, or other data, maintained by a network of computers on the internet without the need for approval from a central authority. As it creates a shared “golden record” of data that is virtually tamper-proof, it obviates the need for reconciliation and could prove a helpful resource for auditing. Banks and other large financial institutions have been ramping up their efforts to develop blockchain-based technology to run some of their most burdensome back-office processes, such as the clearing and settlement of securities.