What is Blockchain Technology? Why Oracle, IBM and Microsoft are working on it?
Several leading banks are soon to be operating on blockchain technology that is being prepared by most of the top IT companies like IBM, Oracle, and Microsoft. Many experts have talked about blockchain’s potential to boost and secure the monetary transactions. Gartner has published a report which states that the business solution market based on blockchain would be costing $10 billion by the year 2020.
However, blockchain is not considered as a differentiator system in the banking industry. It may be adding a superior value in the near future and banks should focus on optimum use and digitalization of data by using Artificial Intelligence and analytics. In banking sector, CIOs may want to use BI tools to conduct the projects of digital transformation. A big differentiator will be created by the banks to modernize the current applications with artificial intelligence. Blockchain is the public ledger technology on which vendor marketing is based and it is not one of the top priorities for the CIOs in the banking sector.
CIOs in the financial and banking services sector are not focused on Blockchain. The latest survey by Gartner reveals the banks are more focused on cloud and AI services as compared to Blockchain. The investment and banking sector understand that the traditional model and old practices will not sustain. The power of analytics and AI will define the future of banking in digital transformation. When Bank chain has been formed by Indian banks to adopt Blockchain, it is not as important as it is projected in media for the banking sector.
The survey of Gartner covered 3160 attendants from 98 nations, of which 354 CIOs from investment and banking services. According to the survey report, most banks have been going digital these days. Over 26% of respondents have decided to add AI technologies and to go digital.