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.

‘Companies can shift from basic financial and operating systems to an improved system ideally suited for a team work. It is based on the innovative blockchain technology. As a result of such changes, the information structure of most active processes will become much simpler’, - Christophe Ozcan assures.

The prospect of lower costs as well as increased efficiency will continue attracting bank managers to the blockchain. A study was carried out to assess the degree of influence of blockchain technologies on banking companies. The experts used information on the expenses of the eight top investment organizations in the world. All the information received was thoroughly analyzed, which made it possible to understand what metrics and parameters would have the maximum impact of blockchain technologies.

The following four examples illustrate the impact of blockchain technology on the operational efficiency of banks:
  1. 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.
  2. 70% of expenses reduction for financial reporting. It is related to data quality optimization, internal control, and transparency of operations.
  3. 50% of expenses reduction for business transactions.
  4. 50% of expenses reduction for centralized activities.
  The results of the study show that the banks taken part in the experiment could have saved a total of about eight billion dollars. It is worth noting that this estimate does not take into account the potential investments and costs of installing and operating a blockchain technology.

The study was guided by criteria with some assumptions. The network effect will not be observed until 2025 in the developed markets. It is believed that the proper legislation will have been enacted by this time to permit the introduction of innovative technologies and to refuse from the outdated infrastructure.

The initial results showed that a large group of expenditures influenced a serious impact of innovative technologies. For many items, the expenses reduction was about 50 %. It must be understood that expense savings will not be possible in the event of difficulties that may arise from state regulators.

A fund rising is rather difficult task today. The effectiveness of traditional methods is constantly decreasing. Meanwhile the funding for blockchain projects is gaining its momentum. This is the evidence not only of increased investment in a blockchain, but also of the fact that it is simply not possible to stop such a growth because of its increasing pace. The amount that the financial market players invested in blockchain projects was more than a few times higher than the experts ' projections.

The banks are now spending a great deal of effort, money and time supporting the processes that do not increase the income. Therefore, financial companies are interested in the opportunities that a blockchain offers as a tool for impact on cost indicators.

‘Despite relatively loud statements made by top banks, the matter does not get any farther from declarations or one-off deals. In fact, there are no large blockchain projects that can offer very low prices and a very high speed. But in the long run, the market will of course be full of projects with similar characteristics. I repeat: for now there aren't. But some projects are being developed. Regarding us I can say that we started working on the project more than a year ago, and thanks to this fact we have an MVP ready, and we're about to have the Alpha version ready soon. We can meet the demand of users quite quickly,’ - told us Igor Chugunov, the CREDITS founder.

We must also understand the fact that a blockchain is not a miracle cure. Technologies are not capable of removing all the emerged faults completely from the system. However, a blockchain can minimize mutual and clearing computational processes. The technology can affect cash management, transaction confirmation, asset optimization, and so on. These business processes today cost companies billions of dollars.

Blockchain-based technologies can optimize procedures concerning mutual settlements or eliminate time intervals specific to the banking industry.

As a result, a blockchain will allow refusing from a large number of elements actively involved in the operating structure of banks today. And this will lead to expenses reduction with no doubt.

Of course, the technology will not be able to completely supplant intermediaries or replace an active ecosystem. However, on the opinion of CREDITS developers, the impact of innovative technologies will radically change the entire financial market. The expectations of experts will become a reality if modern banks reconsider the strategies used.


You can effectively use blockchain technologies only after you have created an action plan. To do this, answer the following questions:
  1. 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?
  2. To what extent are the used investment plans comply with market offers and opportunities? Are they taking into account the evolution of the situation?
  3. 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?

According to the developers of the CREDITS blockchain project, the new platform registry will be able to achieve the highest speed with a new consensus search algorithm, an improved way to receive, process, and save all transactions. A blockchain handles 1 million transactions in one second at a time. The price of a transaction can reach about 0.001 share of the US dollar price. It will depend on the differential rate that works for a particular algorithm.

With the CREDITS platform, you can successfully solve the problem of performing efficient transactions while preserving all the principles of a blockchain and compliance with the highest security requirements.

A blockchain technology can significantly change the performance of a financial company. Investment banks will be able to get maximum benefits from the use of a blockchain only after having transformed seriously most of the elements of the existing system. An efficient, cost effective, and secure operating model will increase in the long run profits and gain a competitive edge over other investment organizations.