As discussed in our latest infographic, whether you’re ready for it or not — blockchain is here. This week’s FIN List takes a closer look at the benefits of blockchain for banks. Those include improved data integrity, increased transaction speed and increased opportunity for cost reductions. We’ve also got the latest on mobile app opportunities, buy-side firms, mortgage lending and the Internet of Things (IoT). Read on for more details.
- Banks and the blockchain. If your bank hasn’t begun exploring blockchain, it’s time to start. Internally, banks should create a team or committee to study blockchain’s impact on their business models. Externally, banks can participate in a number of consortiums currently working to better understand blockchain’s potential, create standards and develop distributed ledger banking solutions.
- Mobile apps as a revenue stream. A new report from S&P Global Market Intelligence said it found many consumers would be willing to pay for their mobile app — with users willing to spend up to $3 a month for the service. The research firm estimated that FIs could generate as much as $500 million in annual revenues.
- Non-banks struggle to win over the buy side. Non-banks are struggling to win over large buy-side clients despite the withdrawal of many banks from the derivatives clearing business, according to industry experts. Following the onset of onerous compliance costs and capital requirements, the withdrawal of banks has opened the door for newer non-bank brokers to get into the clearing and market-making business.
- Tech can reduce mortgage loan turn times. To achieve significant reductions in mortgage processing times, mortgage companies should look at internal processes and workflows, as well as technology solutions that can assist in eliminating days and potentially weeks of processing time.
- IoT is shaping the future of retail and mobile banking. IoT is shaping the present and future of the banking industry. This emerging technology will transform the way financial business is conducted at the retail bank and on the mobile banking channel.
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