New Oracle and Finextra Report Details How Crypto Assets Can Prevail in the Corporate Banking World


The world of traditional finance has long been apprehensive about cryptocurrency entering their space, fearing that the market could become strong enough to be a contender for fiat currency.

Lately, as NewsBTC reports, fintech companies have been increasing on a consistent basis, slowly surpassing corporate banks. The publication identified two of the trends in this growth as being artificial intelligence and blockchain, as written in a recent report by FINEXTRA.

The report, which is called “Key Drivers, Emerging Trends, and Development in Corporate Banking,” speaks on how the combination of the above technologies has the power to speed up financial services. Some of these services include the use of supply chain, KYC protocols, identity management, and trading. The report says that big data will offer the “quantity,” while blockchain’s ability to provide data capture and other benefits makes it the “quality.”

The authors of the report note that using AI technology will help with “cash management solutions” and getting “governance and regulatory needs” met. With this kind of change, corporates would be responsible for a substantial amount of data without having any kind of error, and blockchains are meant to cover that kind of concern.

It is fairly likely, in the opinion of Finextra Research and Oracle Financial Services, that corporations will see more of a solution in blockchain than in what a bank can offer. Even research from the World Economic Forum predicts that 10$ of the GDP around the world will end up stored on blockchain ledgers.

With the lack of speed in central banks and the current monetary policies, it is clear that blockchain has had some challenges in being fully implemented. However, corporations remain unconcerned, continuing to test the blockchain in their own controlled environments.

When it comes to being able to use digital ledger technology, banks have many more challenges ahead of them than corporations. So far, IBM and Alibaba have filed multiple blockchain patents in efforts to investigate the technology further, much like Bank of America and MasterCard.

At this point, the company with the highest number of patents is Bank of America, though former executives have stated that these filings are more of a publicity move than an actual pursuance of using blockchain technology for the financial institution.

Finextra explains that blockchain has the power to facilitate the transfer of value (currency) of anything digital and could be deployed within a cash-pool to manage cash positions and liquidity requirements without the use of traditional bank infrastructure.” While the report notes the possibility of banks providing this option “as a dedicated service,” corporations would be able to manage any blockchain solution with their own infrastructure, if it’s ready.

Even though all of these options for blockchain technology in the corporate world are positive, the report notes that having the fintech for businesses would take a little more time. Furthermore, considering that there are already solutions for database management, there are people outside of the industry that see major issues with blockchain’s scalability and speed.

Still, Finextra is encouraged by the testing done on the “integrity of data that blockchain provides.” To read the full report, visit https://www.finextra.com/finextra-downloads/research/documents/48/oracle_finextra_april19.pdf.

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