The main task of investment banks is to increase income. Timely and correct use of innovations such as a blockchain technology allows attaining the set goals successfully. According to the analysts, this approach increases efficiency, reduces risks and saves billions of dollars. We talked to Igor Chugunov, the founder of the blockchain platform, concerning the fact where such hype about blockchain comes from and whether his new CREDITS blockchain project may become a ‘bank murderer’. A distributed resource or blockchain technology is a new type of system used to organize databases. With a high level of security, all team members can access shared data at the same time. Many modern business projects are based on the reconciliation or the method of harmonization of the data used. However, as long as each individual company independently supports the relevance of information, most of two-way continuous data exchange processes are very slow. A blockchain technology offers a more holistic and effective approach to the issue. According to advisor CREDITS Michael Kapilkov, skepticism is peculiar to all new things, even the Internet was initially considered a toy and something temporary. Therefore, the potential of blockchain technologies is biased. Right now it's hard to say if a blockchain becomes a ‘bank murderer’, but it's definitely going to help the banks get better and faster. ‘We, from our part, are ready to fight skepticism with real opportunities and advantages, meanwhile keeping our work on informing the masses. In comparison to other centralized systems, CREDITS implies: autonomy, reliability, and security (the access to a code cannot be obtained by hackers or third parties), accuracy (the transferred money will be received exactly by the addressee bypassing the intermediaries, and he/she can immediately use it), minimum cost (blockchain’s scalability provides a good passability and the absence of hanging, unvalidated transactions, and therefore very low cost).’ - The developers of CREDITS say.
- ADVANTAGES OF A BLOCKCHAIN FOR BANKS
- 30%-50% of expenses reduction for making compliance with requirements and standards established by laws and supervisory organizations. This is due to the simplicity of retesting transactions and the increased transparency of deals.
- 70% of expenses reduction for financial reporting. It is related to data quality optimization, internal control, and transparency of operations.
- 50% of expenses reduction for business transactions.
- 50% of expenses reduction for centralized activities.
- ASSESSMENT OF THE EFFECTIVENESS OF BLOCKCHAIN TECHNOLOGIES
- Which strategy is used to shift a business to a new level? What innovations will be used as the primary tool? What is their value?
- To what extent are the used investment plans comply with market offers and opportunities? Are they taking into account the evolution of the situation?
- Are you right in choosing regulatory and industry-specific innovative forums used as a source for gathering information? Does the knowledge of a company's staff allow remaining an active player in the marketplace, to notice the introduction of new technologies timely and to use them for their own purposes actively?