Blockchain – Re­shap­ing the bank­ing sec­tor?

The Malta Business Weekly - - NEWS -

“Blockchain and Dis­trib­uted ledger tech­nolo­gies hold sig­nif­i­cant po­ten­tial for in­no­vat­ing the bank­ing sec­tor and Bank of Val­letta is tak­ing the time to study the pos­i­tive out­comes that these tech­nolo­gies can have on its op­er­a­tions”.

This was said by Ivo Camil­leri, ex­ec­u­tive for elec­tronic bank­ing whilst participating in a panel dis­cus­sion at the ‘Block­Fi­nance: Op­por­tu­ni­ties in the Bank­ing Sec­tor’ event or­gan­ised by Fi­nanceMalta on the 11th of Oc­to­ber.

“In re­cent years banks had to fo­cus on reg­u­la­tory com­pli­ance of­ten at the ex­pense of in­no­va­tion. Dis­trib­uted Ledger Tech­nolo­gies such as blockchain, can as­sist banks ad­dress this gap, re­duce costs, gain oper­a­tional ef­fi­cien­cies, en­hance risk and com­pli­ance man­age­ment, and im­prove the customer ex­pe­ri­ence” con­tin­ued Mr Camil­leri.

Dig­i­tal­i­sa­tion us­ing blockchain can ben­e­fit a num­ber of com­plex bank­ing pro­cesses such as those re­lated to customer due-dili­gence and KYC, es­sen­tial for open­ing and main­tain­ing bank ac­counts; the ex­e­cu­tion of trade-fi­nance op­er­a­tions; is­su­ing of syn­di­cated loans; and pay­ments.

“DLT of­fers an in­fra­struc­ture that pro­motes en­hanced col­lab­o­ra­tion be­tween stake­hold­ers in­volved in com­plex fi­nan­cial pro­cesses. This is an op­por­tu­nity for banks, reg­u­la­tors, tech­nol­ogy providers and busi­ness stake­hold­ers to closely work to­gether to achieve un­prece­dented ben­e­fits” con­cluded Mr Camil­leri.

Banks have ex­ten­sive ex­pe­ri­ence de­vel­op­ing fi­nan­cial ser­vices, and some of that ex­pe­ri­ence is go­ing to be es­sen­tial in the de­vel­op­ment of ro­bust al­ter­na­tives that uti­lize these new tech­nolo­gies.

This event was part of a Fi­nanceMalta Series or­gan­ised in col­lab­o­ra­tion with the Malta Blockchain As­so­ci­a­tion. Ken­neth Far­ru­gia, chair­man of Fi­nance Malta, opened the ses­sion.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.