ISITC: Most securities firms plan to explore blockchain technology this year

A recent survey by the International Securities Association Trade Communications Association (ISITC) shows that blockchain technology is currently becoming a hot spot for investment in the financial field.

ISITC is an industry trade organization focused on standards and efficiency in securities transaction processing, with hundreds of companies from around the world, including major financial institutions such as Bank of New York Mellon, Citibank, and JPMorgan Chase.

The association said that in its annual survey on the theme of "development and focus" in the financial industry in 2016, 45 financial services companies from different regions participated in the survey. The results showed that 62% of companies believe that technology investment is a focus in 2016-2017, and interest in blockchain technology and cybersecurity technology is considered to be a driving factor.

Specifically, ISITC noted that 55% of companies are monitoring, researching, or already developing blockchain technology solutions. A whopping 74% of companies also mentioned specific plans to improve cybersecurity, compared to just 57% last year.

62% of companies said that investment in fintech infrastructure was a business priority in 2016, driven by the need to reduce costs, while 80% of companies considered this factor to be the biggest challenge in the year ahead.

Given its transparent and immutable nature, blockchain technology has been widely seen as a way for many financial sectors to drive new efficiencies and reduce fraud.

“Emerging technologies are taking the financial services industry by storm, and our annual survey results confirm that many firms plan to increase investments in blockchain and cybersecurity technologies to address long-term risks and costs,” said Jeff Zoller, ISITC chairman and vice president of T Rowe Price.

ISITC Europe CEO Nigel Solkhon recently told CoinDesk in an interview that he believes the current interest and investment in blockchain by financial firms will have an impact over the next 12 to 18 months.

The association also announced that emerging technologies and innovations disrupting the financial services industry will be a major topic at ISITC’s 22nd Industry Forum and Supplier Exhibition, which will be held March 20-23 at the Boston Waterfront Hotel.