As central financial intermediary, the banking industry offers a broad range of potential applications for blockchain technology. The purpose of this study is the exploration of the possible uses of blockchain in the field of commercial banking, the derivation of potential operational and strategic implications of such applications, and the uncovering of hurdles that currently stand in the way of a wider-scale implementation of the technology.
The exploratory research design is based on a literature review as well as on interviews conducted with dedicated blockchain professionals. The research methodology resulted in the identification of three particularly relevant use cases of blockchain technology in commercial banking: cross-border payments, trade finance, and know-your-customer applications. Utilizing blockchain within these areas can allow commercial banks to reduce process complexity and operating cost as well to unlock additional strategic opportunities. But as of today, technological issues, the lack of a common standard, regulatory uncertainty, and cultural hurdles of organisations still prevent the implementation of blockchain in commercial banks on a wider scale.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Problem Discussion
- Objective of the Study
- Technological Background
- A Short History of Blockchain Technology
- What Blockchain Is
- How Blockchain Works
- The Blockchain Lifecycle
- Consensus Mechanisms
- The Proof-of-Work Mechanism
- The Proof-of-Stake Mechanism
- Types of Blockchains
- Public Blockchains
- Private Blockchains
- Consortium Blockchains
- Benefits of a Blockchain
- Possible Areas of Application for Blockchains
- Cryptocurrencies
- Value-Registry
- ValueWeb and Smart Contracts
- A Short Overview of the Banking Industry
- Commercial Banks
- Investment Banks
- Central Banks
- Research Methodology
- Literature Review
- Expert Interviews
- Methodology Discussion
- The Impact of Blockchain on the Commercial Banking Industry
- Forces of Change in the Banking Industry
- Pressing Use Cases of Blockchain in Commercial Banking
- Use Case: Cross-Border Payments
- Current Situation
- Blockchain-Based Solution: Ripple
- How Ripple Works
- Operational and Strategic Implications
- Outlook
- Use Case: Trade Finance
- Current Situation
- Blockchain-Based Solution: Skuchain
- How Skuchain Works
- Operational and Strategic Implications
- Outlook
- Use Case: Know-Your-Customer
- Current Situation
- Blockchain-Based Solution: SecureKey
- How SecureKey Works
- Operational and Strategic Implications
- Outlook
- Use Case: Cross-Border Payments
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This Master's thesis aims to explore the potential of blockchain technology in commercial banking by identifying relevant use cases, deriving their operational and strategic implications, and uncovering current hurdles for implementation. The study utilizes a combined literature review and expert interviews to gain insights into the field. Here are the key themes explored in this work:- Exploring blockchain's applicability in commercial banking
- Identifying relevant use cases for blockchain implementation
- Analyzing the potential operational and strategic implications of blockchain use
- Investigating the challenges hindering the widespread adoption of blockchain in banking
- Examining potential solutions and future directions for blockchain adoption in the banking industry
Zusammenfassung der Kapitel (Chapter Summaries)
The thesis begins with an introduction outlining the research problem and objectives. Chapter 2 provides a comprehensive overview of blockchain technology, including its history, underlying principles, and various types. Chapter 3 offers a brief overview of the banking industry, focusing on commercial, investment, and central banks. Chapter 4 details the research methodology employed, highlighting the literature review and expert interviews conducted. Chapter 5 delves into the impact of blockchain on the commercial banking industry, exploring the driving forces of change and highlighting specific use cases like cross-border payments, trade finance, and Know Your Customer (KYC) applications. Each use case is analyzed in depth, outlining the current situation, potential blockchain solutions, and their operational and strategic implications. The chapter also discusses the challenges and future outlook for each use case.Schlüsselwörter (Keywords)
This thesis focuses on the exploration of blockchain technology in the realm of commercial banking. Key terms and concepts include blockchain technology, its application in commercial banking, strategic and operational implications, hurdles to implementation, and specific blockchain solutions such as Ripple, Skuchain, and SecureKey. The study aims to shed light on the potential of blockchain to revolutionize banking practices and address the challenges associated with its adoption.- Quote paper
- Philipp Herrlich (Author), 2017, Blockchain in Banking, Munich, GRIN Verlag, https://www.grin.com/document/1180545
