Blockchain To Allow $27 Billion Annually In Savings For Banks By 2030
August 7, 2018 BY Chris Perrotta
According to Juniper Research, their research has shown that by the year 2030, banks across the world will realize $27 billion annually in payment processing, payment reconciliation, treasury operations and compliance.
According to Juniper Research in their report ‘The Future of Blockchain: Key Vertical Opportunities & Deployment Strategies 2018-2030’, by the year 2030, blockchain technology will be saving banks about $27 billion annually in payment processing, payment reconciliation, treasury operations and compliance. It is estimated that it will lower costs by 11% for each on chain transaction.
In the compliance sector, the automation blockchain brings, in verifying digital identities of individuals, will allow roughly a 50% savings of the current cost in the next few years. But because there needs to be a parallel-run blockchain, based on legacy legacy systems, it will take companies a few years to recognize that savings, $1 billion per year by 2024. Even though it will take this technology many years to be fully implemented, the reduction of cost and the automation it brings will be well worth it in the long run.
The picture below illustrates the amount of savings blockchain will allow for each continent:
Their research conducted also includes “three Innovation Indices that are based on quantitative and qualitative assessment of product offerings, R&D activities, and future potential.” In each case IBM has become a market leader.
“IBM continues to demonstrate innovation and leadership across a range of verticals. Over the past 18 months it has attracted dozens of corporate clients, with deployments now moving from proofs of concept and trial to full commercial rollout.” -Dr. Windsor Holden, Research Author