In the course of digitization, more and more banks are relying on blockchain technology, and the first successful projects are exploring the possibilities of peer-to-peer networks and their use in the financial services environment. The results of these projects promise great potential in terms of efficiency, speed and degree of automation. Here it is important to find the right areas of application and to implement them quickly in order to benefit from the opportunities that are opening up.
In order to create a competitive edge, banks must fully exploit their innovation potential. External factors and their effects on the innovation projects of banks and financial institutions are:
- Competitive pressure from competitors' new business models
- Competitive pressure from new entrants/intechs
- Changed user/customer behaviour
- Increase of the innovation speed (First Mover Advantage)
- High expectations of automation and real-time processing levels
- Need for a clear customer focus
- Great demands on flexibility in the adaptation of business models
Distributed Ledger Technologies in the Securities Landscape
Distributed Ledger Technologies (DLT) offer banks and financial service providers new opportunities to open up new business areas and increase efficiency. DLT can serve as a distributed transaction book for assets and data of all kinds and enables the extreme shortening of transaction duration through automated validation and elimination of intermediaries. Transactions are secured by different authentication and authorization concepts. The use of distributed ledgers thus offers the following advantages:
- Transactions in the network are secured by asymmetric cryptographic procedures.
- Transactions are approved only by consensus of the network
- Fraud and unauthorised activities are made considerably more difficult
- Information in the network is unchangeable and transparent.
- Every transaction or status change in the network can be traced and checked.
- Manipulations, cover-ups and fraud become almost impossible.
- "No single point of failure."
- If one actor in the network fails, the others take over.
- All information is stored decentrally in the entire network.
- Network and data are stable against failures, attacks and manipulations by individual actors.
- Reduced downtime risk
By replacing traditional securities processes with central instances for managing data and guarantees, Distributed Ledger technology enables far-reaching optimizations.
Using an internal reference database for securities as an example, the application of DLT can be illustrated very well.
With our specially tailored Use-Case Workshop series, we support our customers in analysing for themselves to what extent blockchain technology could be a strategic approach. It helps to find practical application examples in the securities area, which can be implemented in the first step up to a prototype type.
We combine technology with methodology and expertise to support the successful digitization of processes and products as well as the innovation of digital business models.
Benefit from the combination of our expertise in business, methodology and technology. Rely on our proven results- and user-oriented solution development for the implementation of digital ideas. Rely on EXXETA's know-how in the use of distributed ledger technologies in the securities environment and use the full potential in terms of efficiency, speed and degree of automation for your innovation projects.