How DLT might help banking industry
As the co-founder of 300cubits, an article about blockchain caught my attention. I would like to give my two cents opinion from the perspective of an ex-banking professional having 20+ years experience.
https://www.cryptocoinsnews.com/blockchain-consortium-r3-close-launching-first-pilot-product
R3 is a consortium of more than 80 of the world’s biggest financial institutions in research and development of blockchain usage in the financial system. Many peoples ask me why are so many banks joining R3?
Firstly, DLT (distributed ledger technology), which the banking industry likes to use this term instead of blockchain, is a good technology to replace / supplement current inefficient settlement system within banking industry. You probably should know that regulators or central banks has fined heavily, billions of dollars, on all major banks. All the banks really want to improve the trust between regulators.
A lot of banks are still using systems aged 30 to 40 years old and thus it is very difficult to meet the regulator instantaneously demand of getting data in a short period of time. Most of the banks have to allocate a lot of resources and manpower to accommodate the requests of the regulators.
DLT developed by R3 could potentially help banks. But how? DLT in R3 is not public blockchain but private to participants only. Regulator however has a universal key to access to all data whenever they want to. In future, if everything moved to R3 platform, they will improve efficiency substantially and help improving transparency to regulator.
We should keep track on how does it help the banking industry in future.
My 20Y+ experience: https://www.linkedin.com/in/jonathan-lee-92b158
My current venture: https://300cubits.tech

