Search
 
Best Practices

Blockchain Technology: Balancing Benefits and Evolving Risks

The blockchain promises to improve efficiency for banks and corporates, but it will also require traditional risk management practices to evolve.

By Scott Schmookler, Greg Bangs, Katherine Musbach | Updated on March 09, 2017
A recent technological innovation called the “blockchain” has the potential to transform the way financial institutions process transactions and corporations conduct business.

Financial institutions and corporations have traditionally relied on written documents exchanged during in-person closings to complete transactions and loans, and relied on written checks to document the transfer of funds. Transactions are also subject to time-intensive, complex, and laborious regulatory and compliance reviews. Now blockchain technology offers corporations and financial institutions the opportunity to eliminate billions of dollars in operating costs from the myriad transactions they engage in every year.

Although blockchain was first introduced as the technology underlying cryptocurrencies, it is now being applied in traditional businesses. For example, a consortium of leading banks—including Morgan Stanley and Credit Suisse—recently partnered to apply the blockchain to streamline cross-border payment settlement, with other banks such as Goldman Sachs and Banco Santander developing their own competing blockchain-based system.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

Big Banks for Better Service?

Big Banks for Better Service?

Chris McDonnell |

Why trends in banking relationships since the Covid-19 pandemic are likely to lead to consolidation in the industry.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.