By 2025 big banks could save approximately 30% annually on infrastructure costs by implementing blockchain technology. This is stated in a new impact analysis report of blockchain in capital markets and investment banks by Accenture and the industry benchmarking firm, McLagan. By mapping more than 50 operating cost metrics the report provides a snapshot of the potential for blockchain implementation on cost saving.
In a number of operation cost metrics there are considerable gains to achieve. Central financial reporting could be slashed by 70 % as a result of more streamlined and optimized data quality. Compliance cost can be cut by 30-50% and decentralizing operations such as KYC and client onboarding can cut costs on these matters by half. Finally, there is 50% potential for annual cost savings on business operations such as trade support, middle office, clearance, settlement and investigations by reducing or eliminating the need for reconciliation, confirmation and trade break analysis as key parts of a more efficient and effective clearance and settlement process. All in all without including capital expenditure required to complete implementation it is estimated that for a cost base of 30 billion at least 8 billion can be saved annually by blockchain integration.