Blockchain – Reshaping the banking sector?

“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.