PwC Research Report: Banks should not blindly pursue blockchain

According to a recent report released by Big Four accounting firm PwC, the fintech revolution will not revolve around blockchain innovation itself, although the latter is still at the top of the development trend in the banking industry. At the same time, banks will still tend to integrate "easier" solutions that will optimize their daily operations.

PwC’s view on banks’ innovation priorities

One notable point in the PwC report is how banks look at future technology trends that can improve their services and operations. Simply put, the easier the solution, the higher it is on the list, and blockchain technology is close to the bottom because it will be a challenge to old legacy systems.

However, banks and other financial players need to remember that the easier solution is not always the best option. Sure, it may lead to faster progress in the short term, but these solutions may lose some value over time. For mobile payments and banking hegemony, the race will not be easy, though, and taking shortcuts may harm the company in the long run.

Consumers around the world are looking for simplified user experience options, which is not something that blockchain technology can immediately provide. At the same time, improving user experience can be achieved by upgrading some user interfaces, such as simplifying menus and publishing some mobile applications.

The PwC report explains:

Online banks need to rely on transparency, service quality and unlimited global access to attract millennials, who are willing to visit multiple service channels. In addition, new entrants in the banking market will provide simple and easy-to-use product design and optimized 24/7 customer service, but often through non-traditional methods such as social media.

At the same time, improving the security of money transfers and making payments easier and more convenient have become the focus of banks. Blockchain technology can have a big impact in two areas, thanks to the overall security of encryption measures and the convenience of compatibility with cross-border platforms. That being said, blockchain is not a panacea that can immediately solve this problem.

Promising, but uncertain future

Although the PwC report mentioned that blockchain technology is "the next evolutionary treaty for optimizing business processes", it seems that there is still a lot of uncertainty about the future of distributed ledgers in the financial world. Most participants in the PwC survey also recognize the importance of this technology, but many of them are also in a wait-and-see state.

“There are many startups in this space, such as R3CEV, Digital Asset Holdings (DAH) and Blockstream, which are actively creating new business models, which will accelerate the industry’s ‘creative destruction’,” said the 2016 PwC Global FinTech Survey. “The ability to collaborate with key partners at the strategic and commercial level will, in our view, become a key competitive advantage in the coming years.”

As expected, most of the concerns about blockchain technology have not been raised, as few financial players feel they need to acquire the necessary knowledge. However, such concerns may also cause market participants to underestimate the impact of blockchain on their daily activities, which may harm their overall business competitiveness.

The full original report can be found at Coin Library: http://8btc.com/doc-view-488.html

Original article: https://news.bitcoin.com/pwc-report-blockchain-illiteracy-hurt-banks/
By JP Buntinx
Translator: Overnight porridge
Source (translation): Babbitt Information (http://www.8btc.com/pwc-report-blockchain)