Market Overview

Juniper Research: Blockchain Deployments to Save Banks More Than $27bn Annually by 2030


On-chain Settlement Costs to Fall by 11% Compared With Current Levels

A new study from Juniper
has found that blockchain deployments will enable banks to
realise savings on cross-border settlement transactions of more than $27
billion by the end of 2030, reducing costs by more than 11% per on-chain

According to the research, The
Future of Blockchain: Key Vertical Opportunities & Deployment Strategies
, banks that integrate blockchain will achieve cost
reductions not just in payment processing and reconciliation, but in
treasury operations and compliance. Indeed, the research argued that in
compliance, automation of identity/money-laundering checks, allied to
capability of the blockchain to verify the digital identity of an
individual, should enable savings of up to 50% of the existing costs
base within a few years.

However, the research cautioned that the need to parallel-run
blockchain-based services with legacy systems would mean that savings
would not be realised for several years after initial deployment, with
annual cost reductions not reaching $1 billion per annum until 2024.

For more insights, download Juniper's complimentary whitepaper, ‘5
Industries that will Fuel the Blockchain Boom'

Food Export to Reap Benefits

The new research identified potential savings for consumers and
enterprises across a range of industries, from reduced fees for home
buyers to fraud in the food export trade, where it estimated that
blockchain deployments would reduce the cost of fraud by nearly 50%
within 12 years.

IBM Heads Innovation Indices

Meanwhile, the research also assessed the extent to which 34 leading
blockchain providers were positioned to deliver innovative solutions and
achieve growth. The research includes 3 Innovation Indices (Digital
Identity, Provenance and Financial Services) based on quantitative and
qualitative assessment of product offerings, R&D activities and future
potential. In each index IBM emerged as a market leader.

According to research author Dr Windsor Holden, "IBM continues to
demonstrate innovation and leadership across a range of verticals. Over
the past 18 months it has attracted dozens of corporate clients, with
deployments now moving from proofs of concept and trial to full
commercial rollout."

Juniper Research is acknowledged as the leading analyst house in the
digital commerce and fintech sector, delivering pioneering research into
payments, banking and financial services for over a decade.

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