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The future of banking, through the eyes of Chris Skinner

November 07, 2016

blockchain challenger banks bank banking distributed ledger

Although Chris considers blockchain to be less ‘innovative’ than machine learning (it is ‘just a database’ after all), its potential to revolutionise the banking system is clear, from the ability to cope with the amount of transactions implied by the Internet of Things, through cost savings for retail and wholesale banking, to the possibility of disintermediating banks altogether – if Government and the Regulators can be persuaded to allow this to happen.

A bit of a bleak outlook proposed for challenger banks – though I’ll still be waving my pompoms for them.

As discussed, blockchain is a reimagining of banking but it will take time…shared structures are redefining the industry as they will enable real-time transfers globally for low cost and, right now, much of the cost in AML and KYC. If we can reduce cross-border trust costs through blockchain to a tenth or even a hundredth of what they are today, then that is why this is important so yes, blockchain distributed ledgers are a redefining factor of the banking industry.

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