Accenture: Blockchain tech could save top investment banks $8 billion a year

Regulation | January 18, 2017 By:

Blockchain technology could save leading investment banks up to $12 billion a year in back office cost, according to a report by Accenture.

The report (co-written with benchmarking consultancy McLagan) focuses on the kinds of cost savings investment banks could potentially achieve through use of the tech to streamline various office functions.

Financial reporting expenses, for example, could fall by at least 70%, whereas compliance costs could drop between 30% and 50%, according to Accenture.

Overall savings, the firm suggests, could be between $8bn and $12bn a year.

Richard Lumb, Accenture’s group chief executive of financial services, said: “Capital markets institutions have faced a perfect storm of regulatory-compliance costs and revenue pressures in recent years, prompting them to invest in emerging technologies as a lever to improve profitability.

“Through this first-of-its-kind analysis of real-world cost data, we draw a clearer line under blockchain’s value to investment banks. Our goal is to help banks move rapidly from proof-of-concept to production system with blockchain technology, generating real cost savings and improving bottom-line results.”

Accenture argues that the tech could help halve costs associated with customer identification and anti-money laundering controls, as well as cut general business offices by 50% annually as well.