From concept to practice: how banks in the Netherlands use block chains


nnnIn the innovation of the Netherlands in the development of block-chain technology also played a role model, a number of Dutch banks in the chain of the chain caused a lot of financial and scientific and technological attention, the move worthy of the study, while able to give People some relevant revelation. This paper summarizes and analyzes the sectoral chain initiatives in the Dutch banking sector, further emphasizing the role of this new technology.n
nnTranslated by: Inan
nSince 2013 and 2014, Dutch organizations and banks have been at the forefront of the European chain-chain initiative.n
nBecause of the urgent need to increase the return on equity (RoE), these initiatives test the potential of the technology to improve efficiency, trust, transparency, coverage and innovation in the banking sector.n
nAfter three years of study, all major Dutch banks have made significant progress in their block-chain agenda in the summer of 2017.n
nAt the beginning of July 2017, two major Dutch banks, ABN AMRO and Rabobank, joined the Chain Chain Concept Verification (PoC) program for SWIFT Global Pay Innovation (GPI) service. At the same time, ING and Calypso and R3 alliance, successfully completed the block chain transaction confirmation platform test.n
nThe Netherlands has been known for innovation and is third in the Global Innovation Index report. This successful block chain case is due to policy, co-operation and regulatory coherence, bringing Dutch banks to the forefront of the global chain-chain initiative The The purpose of this paper is to highlight some of the important block chain-related topics we observed in the Dutch banking industry in recent years and the prospects for 2017-2018 and to reflect on the main implications of our results.n
nDutch banks have made significant strides in the use of block chains and are exploring opportunities in other businesses.n
nStudies have shown that most large Dutch banks have strengthened their block-chain initiatives during the period 2016-2017 to conduct a variety of business conceptual validation, out of the initial exploratory phase.n
nING conducted 27 conceptual validation in six business areas, including payments, trade finance and operating capital solutions, financial markets, bank vouchers, loans, compliance and identity verification. Specific KPIs are also used to confirm the results and applicability of these proofs. For example, trade finance PoC shows that it can greatly improve the paper-based process, which can save 10% -15% of the cost.n
nThe Dutch bank also began a similar pilot to explore how the block chain application “Torch” made the participants of the real estate transaction record and exchange information smoothly. The bank also explored how the chain chain would address financial audits and compliance issues in financial recovery and restructuring (FR u0026 R).n
nCooperative Banks’ initiatives are focused on cross-border payments and small payments, while SNS Banks are divorced from traditional banking and testing block chains to address inefficiencies in health care systems.n
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nCooperation to promote developmentn
nClose cooperation is also indispensable for exploring the application of block chains. In order to find the right sector chain technology and appropriate use cases, Dutch banks have worked with other banks and financial technology companies, or join regional and global alliances.n
nIn 2016, ING worked with a number of organizations, including R3, the Dutch central bank, the Dutch Payments Association and the European Banking Forum. The bank also worked with Mercury in France and trader Mercuria to test the use of block chains for oil deals.n
nThe Bank of the Netherlands has partnered with the TU Delft, Rotterdam and other 14 organizations to explore the chain of opportunities for logistics. The $ 2.2 million project focused on providing three specific use cases: supply chain financing, inventory financing and recycling economy. At the same time, the Dutch Cooperative Bank also cooperates with technology vendors such as D H and accelerator projects such as Startupbootcamp, Footbytes, Rockstart and Nexus Laboratories.n
nIn addition, the National Blockchain Coalition, which was established in March 2017, envisioned a method of coordinating and opening up the network for the Dutch market, which may demonstrate a government-dominated reliable block-chain application that is socially acceptable Create a conditional effort.n
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nPreferred platform appearsn
nThere are also specific platforms that are welcomed by these institutions.n
nOver the past 18 months, many of the proofs have taken advantage of the technology of the Etherhouse or Superbook. Both technologies are mature licensed chain technologies that allow external actors to use, and are therefore widely accepted by Dutch banks.n
nIn addition, smart contracts and programmable contracts can automatically negotiate or enforce contract terms and play an important role as a leading block chain use case. They are built on a block-chain solution.n
nING, ABN AMRO and the Dutch Cooperative Bank are using smart contract solutions to gain “reduced paperwork” advantage, thereby reducing transaction processing costs.n
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n2017-2018 Prospectsn
nIn 2016-2018, Dutch banks conducted extensive technical exploration and proof of concept in a wide range of business areas, and in 2017-2018 they could focus on selected operational areas, use cases and commercial solutions.n
nIn the coming year we will see significant progress in the use of block chains by Dutch banks – from the conceptual phase to the full solution phase. All major Dutch banks will have a block chain prototype and will also perform performance and scalability tests on these solutions. Some solutions (especially in terms of payment, supply chain and trade finance) are likely to be launched as pilot and will take the initial steps of commercialization.n
nThis evolution is in line with Accenture’s prediction of the chain process, and it is expected that there will be clear regulation of early adoption in 2017, followed by the growth period of 2018-2024, which will become mainstream in 2025.n
nAlthough we have a few years from a wide range of markets, 2017-2018 may be a period in which the chain of chains changes from commitment to actual solutions.n
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nThe Enlightenment of Block Chainn
nThe assessment of these initiatives, proof of concept and its successful results clearly shows that the Dutch banks’ block chains are more fully prepared than many banks in Europe and the international market.n
nThis is largely due to the vibrant entrepreneurial presence in the Netherlands, whose technological output drives economic development.n
nAt the same time, technical staff also appeared between the greater trend, which gave us some inspiration, including:n
nn1. The importance of a clear governance: arranging governance structures while keeping in mind the different criteria for taking into account different stakeholders is the key to the implementation of the block chain plan.n
nnn2. Understand the “known unknown” at the legal level of the chain chain, especially when we study the data privacy field, we may encounter some challenges if the traditional database is eliminated in other block chain solutions.n
nnn3. Data invariance and distribution: This is not related to data retention laws. Human error or mischief currently severely limits the use case.n
nnn4. Performance, data privacy, scalability and maintainability: Data privacy is a problem that Dutch banks are still trying to solve because building trust is very important. Before the launch of the actual solution, the bank must ensure that the technology does not compromise customer data.n
nnn5. Early integration with risk and compliance partners in a changing risk environment: Risk management functions within banks generally do not serve multiple stakeholders. The success of the block chain initiative often depends on the risk resolution.n
nnn6. There are too many different block chain technologies. In order to promote cooperation, stakeholders should have a clear vision of the single technology that promotes implementation.n
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nOther viewsn
nWhile people are still exploring the concept of chain chains and their challenges, the potential impact of the technology on the fundamentals of banks is becoming more pronounced.n
nA study by Accenture-McGregor estimates that a chain-based database system can reduce the cost of central financial reporting by 70 percent, reduce compliance costs by 30 percent to 50 percent, and potentially save 50 percent on operating costs.n
nThese convincing figures will provide a good reason for global banks to develop chain-chain projects in 2017-2018.n
nThe block chain is often referred to as the “most important thing since the Internet”, and its gradual application in the traditional environment suggests that the technology is likely to have real change, and banks can use their potential to subvert the status quo.n

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