Market research firm BIS in a research titled "Blockchain Technology in Financial Services Market (2017 - 2026)," says that the technology was expected to witness traction in India.
This, especially in the areas of financial services market.
In fact, adoption of blockchain based technology is expected to save companies in the financial services as much as $40 billion every year.
The adoption of technology is expected to save financial institutions over $40 billion per year in infrastructure, IT, operational, third-party fee, and administrative personnel costs. Many Indian players have tested the usage of blockchain in the trade finance, cross-border payments, bill discounting, supply chain financing, loyalty and digital identity areas. A few Indian banks, business conglomerates, and stock exchange are among the pioneers for exploring blockchain in India.
Analyst Gaurav Gaggar says "The use of blockchain technology is expected to impact certain segments of the financial market in a phased manner, impacting trade finance, digital identity management, KYC digital identity, private market trading, P2P payments and P2P loans from 2017 - 2020."
Major companies are expected to invest heavily and contribute to the advancement of technology through isolated internal experiments, partnerships with technology providers and industrial consortiums.
However, despite the transformative potential of blockchain technology, more than 40% financial institutions remained skeptical about the practical implementation and viability of the technology and have adopted a 'wait and see' approach for the near future.
BIS's analyst Tushar Agarwal explained that trade finance was likely to be the biggest beneficiary of the blockchain technology, "as its potential use can help in reducing the paper-intensive, manual processes, and document sharing cost."
"Implementation of the technology will also reduce the trade finance gap, free-up the capital tied-up in the trade finance process, and result in savings of over $30 - $40 billion per year," he added.