According to the Deloitte 2021 Global Blockchain Survey, the future is digital and institutions like banks must be prepared for the inevitable change.
Audit firm Deloitte has released a new study showing that the global financial services industry is undergoing dramatic changes due to the trends caused by the coronavirus pandemic.
The study notes that for further growth, the financial services industry must modernize products and their distribution through blockchain, and work on other important areas that form the basis for change.
The researchers pointed out that the foundations of the financial services industry are outdated and in need of renewal. In order to continue to stay on top, it is recommended to make accelerated innovation. Overall, the study focused on the role of blockchain and cryptocurrencies in the digital revolution.
The survey was conducted from March 24 to April 10, 2021 and was attended by 1,280 respondents, including senior executives and practitioners from ten countries. Respondents from Brazil, mainland China, Germany, Hong Kong, Japan, Singapore, South Africa, the United Arab Emirates, the United Kingdom and the United States were interviewed. The participants were grouped into three categories: general, the entire financial services industry, and the pioneers of this industry.
A record 73% of respondents indicated that companies will miss out on growth opportunities if they don’t integrate blockchain and digital assets into their operations. In addition, 76% believe that physical money can be replaced by cryptocurrencies within the next ten years.
Company executives gave a variety of answers regarding the areas in which cryptocurrencies will find the greatest use.
The three most popular options are speed improvements, including payments, transparency and compliance, and increased trust. Notably, about 43% of respondents in the financial services industry said new payment methods will play a key role for digital assets in their companies.
A group of pioneers in the financial services sector rated access to funding as the best option, with a significant 70% margin. In addition, 80% of respondents point out that cryptocurrencies are likely to start playing a vital role in their sectors in the next 2 years.
Deloitte noted an interesting fact: 81% of respondents believe that blockchain technology is highly scalable and is already widespread and various use cases.
The study also says that the largest number of use cases are for secure exchange of information through the blockchain, followed by cryptocurrencies. Notably, digital currencies are gaining ground among industry pioneers and the financial services sector as a whole.
“As disruptive innovation such as digital assets is rapidly changing the marketplace, global financial services are trying to reinvent themselves by creating business lines to generate new revenue streams.
The opportunities for real change in several areas of the world’s financial markets exist precisely for those exploring new ways to harness the power of blockchain and digital assets to rethink their business models , ”said Richard Walker, CEO of Deloitte Consulting LLP.
Regarding the adoption of blockchain technology and cryptocurrencies, a significant number of respondents in the general group – 6 out of 10 and 7 out of 10 in the category of “pioneers” indicated that regulation is the main obstacle.
Also, respondents from all categories reported that cybersecurity is the number one issue.