Blockchain in Banking and Financial Services Market Scope
Blockchain technology represents a next-generation shift from the present technology and has the potential to transform the banking and financial service industry in various ways. It enables banks and corporations to make cross-border money transfers which provide real-time settlement and reduce costs by optimizing liquidity and eliminating reconciliation. Of late, online payments have gained huge tractions and approaches obsolete and opened up a new world of opportunities. Further, this network creates the means for transacting and enables transferring of value and information. Greater levels of security, authentication, ease of transactions, and transparency are boosting the growth of the blockchain in banking and financial services market globally.
The companies are exploring the market by adopting mergers & acquisitions, expansions, investments, new service launches, and collaborations as their preferred strategies. The players are exploring new geographies through expansions and acquisitions to avail a competitive advantage through combined synergies. Research Analyst at AMA estimates that United States Players will contribute to the maximum growth of Global Blockchain in Banking and Financial Services market throughout the predicted period.
Microsoft Corporation (United States), Intel Corporation (United States), IBM Corporation (United States), R3 (United States), ConsenSys (United States), SAP (Germany), Oracle Corporation (United States), Akamai Technologies, Inc. (United States), Accenture plc (Ireland), Amazon Web Services, Inc. (United States) and JPMorgan Chase & Co. (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research are Cegeka (Netherlands), Huawei (China) and BTL Group (Canada).
Segmentation Overview
The study have segmented the market of Global Blockchain in Banking and Financial Services market by Type (Public Blockchain, Private Blockchain and Others), by Application (Fund Transaction Management, Real-Time Loan Funding, Liquidity Management and Others) and Region with country level break-up.
On the basis of geography, the market of Blockchain in Banking and Financial Services has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico).
Influencing Trend:
Have the Potential to Save Banks Billions in Cash by Dramatically Reducing Processing Costs and Dealing with the Complexity of Cross-Border Payments through Innovation
Market Growth Drivers:
Rising Adoption of Blockchain Solutions for Payments and Digital Identities, Increasing Number of Government Initiatives in Developed Countries, Implementation of Blockchain Making Banks More Profitable and Valuable and Several Countries Government Promoting Blockchain Distributed Ledgers
Challenges:
Uncertain Regulatory and Compliance Environment and Limited Availability of Technical Skillsets for Implementing the Blockchain Technology
Restraints:
Low Supervisory Control on Transactions and Privacy Issues and The Threat of Internet Security and Price Instability
Opportunities:
Shifting and Changing Business Models in Banking and Financial Services, Opportunity to Reduce Transaction Costs and the Amount of Paper and Process in Trade Finance and Provides Faster and Cheaper Transnational Payments to Developing Economies
In January 2019, Akamai Technologies, Inc. and Mitsubishi UFJ Financial Group (MUFG) announced an expansion of their relationship through the establishment of a joint venture, the Global Open Network, Inc. (GO-NET), and their plans to offer a new blockchain-based online payment network enabling next-generation transaction security, scale, and responsiveness.
"The United States Securities Exchange Commission (SEC), which has been actively exploring potential applications of blockchains for financial services transactions in the public securities market, is convinced that cryptocurrencies are under their jurisdiction. Moreover, the SEC has embraced the early adoption of blockchains as it relates to securities using its t0.com blockchain platform"
Analyst View
According to the World Federation of Exchanges database, the total value of stocks traded globally is around USD 77.5 Trillion, and the market is getting bigger and more complex by the day. With transaction time and operational costs being a top concern, major stock exchanges are exploring blockchain for its potential to allow almost immediate settlements and automate compliance through smart contracts, with greater levels of security and transparency.
Key Target Audience
Blockchain Technology Vendors, Network Solution Providers, Independent Software Vendors, Payment Gateway Providers, Value-Added Resellers, Blockchain Security Providers, Industry Associations, Government and Private Research Organizations, Government Regulatory Bodies and Others
About Approach
The research aims to propose a patent-based approach in searching for potential technology partners as a supporting tool for enabling open innovation. The study also proposes a systematic searching process of technology partners as a
preliminary step to select the emerging and key players that are involved in implementing market estimations. While patent analysis is employed to overcome the aforementioned data- and process-related limitations, as expenses occurred in that technology allows us to estimate the market size by evolving segments as target market from the total available market.