Banks to explore the endeavour, and hesitation wait behind the chain block

 Banks to explore the endeavour, and hesitation wait behind the chain block

Text: Haining

Editor: Deng Long, Wang Qiao

Banking and finance technology enterprises in cross-border payments in the field of ocean compete.

In February this year, Japan JP Morgan announced the official launch of JPMC, for the flow of funds between enterprises. A month later, IBM announced the launch of World Wire payment network, will provide the service for the 47 currencies in 44 bank terminal 72.

In fact, the traditional banking and financial technology between enterprises “race” has been for a long time. Is not only in the field of cross-border payment, so it is in the block chain, banks to explore nature not far behind.

 Banks to explore the endeavour, and hesitation wait behind the chain block

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Consultancy McKinsey has said: the blockchain will become the bank “subversion of the rules of the game”. The bank will completely subvert the underlying technology and infrastructure, and bring about a change on the business model.

Between subversion and self reform, the traditional bank selection and their subversive embrace.

However, the blockchain application case canvass of banks, and actively embrace the appearance seems dubious”. Banks treat the blockchain attitude, and treat all the technological innovation attitude is exactly the same, perhaps more cautious.

Dare to touch the core business

Although the constant reports of banks are pushing block chain project, but most of them do not involve the core of the deposit and loan business.

Zinc link learned that, as of now, claims to have application in the field of landing block chain banks have been many, is actively exploring the block chain is more be too numerous to enumerate. Since 2016, the China bank, industrial and commercial bank, construction bank and other four banks in the first act of cross-border payment, bills, financing, settlement, asset custody, digital integration, BaaS field application. But from the actual project, involving the core business application is small.

 Banks to explore the endeavour, and hesitation wait behind the chain block

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Hug and block chain back to back, what is the bank’s concerns?

Technology is not mature, the infrastructure is not perfect:

Not all banks need block chain, however, even fit in some of the characteristics of the business, the bank is full of worries.

Forms Syntron R & D center director Wang Chao told the zinc link, banks and other financial institutions for the high requirements of the maturity of the system, the high frequency trading scenario, block chain performance is one of the main bottlenecks, compared with the traditional centralized processing mode and no advantage. The distributed architecture not on the block chain, which requires coordination and common management, permissions granularity fine enough also increased the difficulty of block chain management.

In addition, compatibility problems block chain system and the existing system, as well as the cost and difficulty of the development, operation and maintenance, but also allow banks to hesitate.

 Banks to explore the endeavour, and hesitation wait behind the chain block

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Inter agency cooperation, involving data privacy and security:

According to a reluctance to disclose the Name insiders told the zinc link, 2017, Chinese UnionPay has developed a cross line integral landing block chain based system, the project has passed the POC test and delivery, but eventually settle a matter by leaving it unsettled.

Online, deputy chief engineer of new technology research and development department responsible for China UnionPay data Li Tao has affirmed the blockchain can solve the integral cross sharing problem, “compared with the traditional centralized database, block chain has information transparent, data tampering and other advantages, so in some of their cooperation and information asymmetry in the big scene come in handy.”

So, why not see the subsequent promotion of business?

 Banks to explore the endeavour, and hesitation wait behind the chain block

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According to the insiders speculated that in addition to technical reasons, perhaps related to the internal decision-making.

From the operational level, cross line integration sharing inevitable interbank data sharing, data related to the core interests of the bank, the bank will not easily to show people.

Moreover, collaborative characteristics of distributed database to data sharing, it involves the issue of data privacy. According to data privacy for computing such solutions is still in the stage of technical research.

Policy uncertainty, poor compliance issues:

In China, as long as the formal institution, on any occasion were never talk about digital currency, even if it is to do in the block chain system in circulation “card”, the industry is also cautious.

According to PWC’s “2018 financial report” for the application of science and technology, the block chain in the financial sector, respondents are most concerned about is the compliance risk.

Overseas, many banks are actively exploring based on digital currency payment. AI zhesen found in research bankers, 90% banks said it is actively exploring digital currency.

 Banks to explore the endeavour, and hesitation wait behind the chain block

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In 2017, UBS combined 6 banks issued “multi function settlement currency, intended to be used in the block chain on the settlement of a financial transaction; in 2018, MITSUBISHI UFJ announced on 2019 test of digital currency…… After this year, JP Morgan JPMC, the bank’s digital currency voice is gone up.

But never talk about “money” in China, it all seems very distant.

In 2014, the people’s Bank of Chinese established legal digital currency panel, in order to prove the feasibility of legal digital currency. But until today, there is still no definite news.

Many institutions in the hope that the central bank digital currency issue. The Ministry of science and technology development strategy of Jin Qiu Liu Mingrui vice president told the central bank zinc link, digital currency is a digital currency, it does not mean the issue of digital currency legalization, but the banking industry compliance exploration plays an important significance, at the same time, in the “innovation always top-down” of the financial industry, which means the possibility of the new clearing medium.

Hold the cheese, the traditional banks actively explore the blockchain

The banks are taking more than financial functions. From traditional outlets to online banking, to the mobile terminal, and to the present service experience, or spontaneous or forced, traditional banks are being pushed in constant flow.

With the publication date of licence Jianxingjianjin, virtual bank is also the voice of the rise. Hongkong is about to usher in a virtual bank, it is considered in the Hongkong market is subversive. However, informed the media, Tencent, Ali, millet, zhong an all in the column. From the list of licenses, many traditional banks may not keep up the pace again, they will become a member of the subversion?

 Banks to explore the endeavour, and hesitation wait behind the chain block

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In the mainland, “virtual bank” or “Internet banking”, with micro focus bank, commercial bank and other led. As the first private bank, internet bank, micro public will probably become the first “blockchain bank. Today, ABCD (artificial intelligence, block chain, cloud computing, big data) has become the four major elements of the micro congregation.

According to the PWC report, the blockchain technology can be applied in different from banking, payment and settlement, to the circulation of bills and financial supply chain, to more complex securities issuance and trading and other core business areas. Bring the block chain technology proceeds will benefit all parties involved in the transaction, including banks, bank customers, partners. The process of financial services are efficiency bottleneck, transaction time delay, fraud and operational risk pain points.

In fact, the bank is the carrier of financial function is not changed, change is the bearing medium and the form of service.

Whether it is the independent research and development or cooperation with financial institutions, traditional banks always cautious may need a faster response and more open attitude, in order to hold the “cheese”, so as not to lead in the blockchain a new round of reform has been “subversive”.

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