A recent poll conducted by Specialist Banking found that 6889% of financial intermediaries believe that cryptocurrencies/blockchain will play a big part in the future of banking.
Some banks are considering incorporating blockchain into their businesses or offer services that deal with cryptocurrencies.
Earlier this year, mobile bank Revolut announced it was soon to release phase one of its cryptocurrency offering to its customers.
'Financial Services: Building Blockchain One Block at a Time' â€“ a study by global technology consulting and services firm Cognizant â€“ found that three-quarters of financial services executives predicted that their revenues would grow by more than 5% following the adoption of blockchain.
However, only 48% of respondents reported that they had a defined blockchain strategy.
â€œThese results [the Specialist Banking poll] show the potential that many within the banking industry already see in blockchain technology and cryptocurrencies,' said Rahim Kaba, director of product marketing at VASCO, a software firm which works with companies such as Wells Fargo, US Bank, JP Morgan Chase and RBC Royal Bank.
â€œAs the pressure to digitise processes, strengthen compliance and audit practices and transact securely across channels increases, blockchain is emerging as a viable digital platform that can adequately address both consumer and business concerns.
â€œBlockchain gives banks and other financial institutions choice with respect to the technology platform they choose while digitising business transactions.
â€œIn the lending market, for example, leveraging blockchain to record transactions tied to loans provides a new way of transacting with multiple parties in an open, efficient and cost-effective manner.
â€œDirect participants and 'observers' such as auditors and regulators can more easily track transactions and verify their authenticity.
â€œBlockchain's decentralised approach ultimately changes the dynamics of today's financial system â€“ shifting the power from institutions to users.'
Jon Matonis, VP corporate strategy at blockchain research and development specialist nChain, said: â€œPrevailing wisdom states that there is a potential $20bn in costs savings to be realised by banks via improved blockchain reconciliation processes.'
Research has shown that blockchain technology could reduce infrastructure costs for eight of the world's 10 largest investment banks by an average of 30%.
â€œRegarding the readership poll on the topic of cryptocurrencies and blockchain playing a larger role in banking, I would caution that it may not be in the way banks expect because public blockchain cryptocurrencies remove barriers to entry and bring new market entrants into the traditional functional roles of banking,' added Jon.
Graham Lloyd, director and industry principal of financial services at Pegasystems, believed it was not a question of whether or not cryptocurrencies/blockchain would play a big part in the future of banking but, instead, how long it would take.
â€œIt's difficult for people to understand how cryptocurrencies are controlled, but even harder to get comfortable about their value fluctuations.'
A recent study by HSBC revealed that 80% of respondents did not understand blockchain.
â€œAs people become more comfortable and develop a greater understanding of blockchain, their perceptions will change,' added Graham.
â€œWhile some suggest it will be a force for good, others suggest that the changes it would impose on the way these organisations operate will leave a trail of ruin in their wake.
â€œEither way, one thing seems certain: the potentially huge blockchain iceberg lying on the financial services industry horizon requires careful navigation to avoid a massive collision.'
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Aldermore appoints new head of intermediary distribution
Aldermore has appointed Nick Parker (pictured above) as its new head of intermediary distribution within its retail mortgage business...
Ipswich Building Society to develop enhanced savings proposition over next two years
Ipswich Building Society has confirmed that it will develop an enhanced savings proposition over the next two years, with a focus on both digital and face-to-face services...
BTR: Tenant poacher or happy bedfellow?
The sand has been shifting so much under the feet of private landlords that many may believe they are becoming an endangered species...
Paragon bolsters asset finance team
Paragon has appointed Jan Greenhalgh as head of new business within its asset finance division...
Gatehouse Bank appoints new director
Gatehouse Bank has appointed Roger Evans (pictured above) as its new director of home finance distribution...
Rob Lankey to join Shawbrook as director of commercial investment
Shawbrook has announced that Rob Lankey (pictured above) will join as its new director of commercial investment at the end of February...
Secure Trust Bank ceases new mortgage lending
Secure Trust Bank has revealed that it has ceased new mortgage lending...
Starling Bank announces three new partnerships
Starling Bank has expanded its banking services offering with the introduction of three new partners...
Mortgage advisers forecast almost no growth in business levels in Q1
Mortgage advisers expect business growth of only 0.1% in in Q1 2019, according to recent research...
Fidor partners with Finn AI to launch AI-powered chatbot for banks
Digital banking group Fidor has partnered with banking technology provider Finn AI to launch a new AI-powered chatbot for banks...
Tesco Bank cuts mortgage rates
Tesco Bank has reduced rates across its residential mortgage range...