Since the boom of blockchain technology during the dawn of the decade, it has gone through several case uses and applications in virtually all walks of human activity. The involvement of blockchain technology in commercial activities have since grown in the development of competitive operational enhancements such as administrative services, payment gateways, regulation of intellectual property rights, distribution of information/benefits, and utilization of smart contracts.
Despite these massive leaps, however, many industries, especially in the world of banking and finance, have yet to accept or adapt to the changing times of information processing and data sharing.
Late this week, seven international banks including HSBC, Deutsche Bank, BNP Paribas, and Citibank signed a Memorandum of Understanding for the creation of a global digital network in trade finance. This system aims to sponsor cheaper and easier means of transactions and funding for its users, especially their corporate counterparts.
With this platform, participating banks will gain access to verified trade information that can minimize double financing and false trade data that can span across several industries. The platform will then be able to finance a good part of the $1.5-trillion annual demand, which the market currently cannot efficiently cater to.
It’s said that 20 more banks expressed their interest to join this platform and sixty international conglomerates had been invited to participate in this network that seeks to overtake the current standardized modes of connectivity such as SWIFT.
It can be seen that despite growing adaption of blockchain technology in other industries such as in logistics/shipping (Maersk and IBM partnership), the world of finance has yet to adjust to the times as it continues to fight in two major battle grounds: the innovation of business processing through blockchain and the seeming volatility of the global cryptocurrency market.
Adding to the fast innovation in Artificial Intelligence, it would seem that the world is slowly turning to digital automation of work and enhancement of information processing that really may bring about a world without banks.