Banks around the world seem to be gradually embracing blockchain technology, as they can’t deny its usefulness and practicality anymore. New Zealand’s SBS Bank is the latest one in the mix.
Ever since blockchain technology made its presence felt, it has provided a benefits which banks around the world are starting to recognize. The necessity for change is big in the financial world and even slow-moving, traditional financial institutions can see it.
The process of adopting the blockchain technology and cryptos by banks and other financial institutions is still rather slow. Several banks continue to deny that there is a necessity to implement such technologies. Some believe that cryptos are a bubble, while others refuse to admit that their customers’ interest in blockchain technology continues to grow.
Still, some banks are warming up to the idea of embracing blockchain, and New Zealand’s SBS Bank’s consideration is the perfect example of this.
SBS Bank Blockchain Discussions
SBS Bank recently held an annual meeting which saw a lot of discussion regarding the subjects of cryptocurrencies and blockchain technology. Even so, the bank still continues to evade the necessity to seriously consider diving into crypto, believing, just like many others, that it is still way too soon for that.
However, when it comes to the blockchain technology, there seems to be much more positivity. The bank seems to even see it as a pretty important point of interest. Similarly to many other big names in the financial industry, SBS bank also believes that the blockchain technology actually has a real potential to solve some major problems.
Shaun Drylie, the bank’s chief executive officer said that the bank’s officials are still not sure about cryptocurrencies. He makes a point that cryptos are still too volatile to be embraced by banks. He added that this might not be the case forever and that the bank still holds a close eye on the crypto market. However, now is not a good time to seriously get into it. Blockchain, on the other, is a completely different story.
SBS Bank blockchain discussions touched upon many aspects of this innovative technology. They explored its potential applications in today’s financial and banking industry. Of course, there is much more exploration to be done in order to make use of such a technology in the best, and most productive way. This is seen as an excellent opportunity to provide banking services even to those users that are limited when it comes to accessing the bank’s physical branches.
Benefits of Blockchain
Adding a tool like a blockchain to the banks’ systems might make it much easier for the general population to join the bank, and make working with the bank much more convenient at the same time. Not to mention that blockchain’s transparency and immunity to manipulation would restore trust in the banking system and its processes.
This might be especially beneficial for banks like SBS, which has recently seen a significant increase in the number of loan approvals. Eliminating a pile of paperwork for each approval would speed things up, and allow the bank to provide more effective, faster, and more transparent services.
Of course, even though SBS Bank blockchain considerations are a very important step for the future of New Zealand’s financial services, this is not the first bank in the country to decide to take such a step. A well-known banking group called the ANZ (Australia and New Zealand Banking Group) has already had collaborations with IBM in order to find blockchain solutions and improve their practices.