Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Lecture at University of Applied Sciences in Basel

269 views

Published on

On 29th of March 2017 I was giving a lecture about Blockchain Use Cases in Finance at University of Applied Sciences in Basel.

About SmartCredit.io:
Web Site: https://smartcredit.io
LinkedIn: https://www.linkedin.com/company/smartcredit-io/
Blog (first articles from Jan 2014): https://smartcredit.io/blog
Telegram: https://t.me/joinchat/F5I6KBCZT-z0hLERNG5SMg
Youtube: https://www.youtube.com/channel/UCBhZiej6Yw-ENAswR3ImjBg
Instagram: https://www.instagram.com/smartcredit_io/
Twitter: https://twitter.com/Smartcredit_io
FaceBook: https://www.facebook.com/smartcredit.io/
Tenor: https://tenor.com/users/smartcredit
Meetup: https://www.meetup.com/SmartCredit-io-Meetup-Group

Published in: Economy & Finance
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Lecture at University of Applied Sciences in Basel

  1. 1. Blockchain Use Cases in Finance What’s about disintermediation? Martin Ploom, Executive MBA, Dipl. Inf., Ms. Ec., Ms. Eng., CFA Level III passed martin@blockchain-business.com
  2. 2. Agenda Is it real ? Which use cases ? Disintermediation – disintermediate or get disintermediated Remittances Cross Border Payments Portfolio Management Settlement Trade Finance Summary 1 2 3 4 5 6 7 8 9
  3. 3. 1
  4. 4. Is it real ? Martin Ploom – Blockchain use cases in Finance 1
  5. 5. Adoption Roadmap Martin Ploom – Blockchain use cases in Finance 1
  6. 6. Which use cases for blockchain ? Martin Ploom – Blockchain use cases in Finance 2
  7. 7. List of financial use cases Martin Ploom – Blockchain use cases in Finance 2
  8. 8. Martin Ploom – Blockchain use cases in Finance 2
  9. 9. Centralized Ledger vs. Distributed Ledger Disintermediation in Finance – yes! But whom ? Martin Ploom – Blockchain use cases in Finance 3 But who is getting disintermediated? • Clearing Houses or • Banks or • Both ?
  10. 10. Cut the middleman - Loyalitycoin http://www.loyaltycoin.ch/index-en.html 3
  11. 11. Cut the middleman - Xenio https://xenio.io/ http://store.steampowered.com/about/3 Blockchain Use Cases in Finance 11
  12. 12. Blockchain Drives Disintermediation Market change can be faster than response of Banks Banks Value Network Client Value Network* Client Value Network Client Value Network Banks Value Network Blockchain based Value Networks Client Value Network Transformation «Traditional» services Blockchain based services * Value Network as Economic Ecosystem ** Value Networks are usually Graphs 3
  13. 13. Blockchain Disintermediation – Revenues Average Bank to loose ca 60% of current revenues Impacts of Disintermediation (example Credit Suisse Swiss Division) Net interest income Recurring commissions and fees Transaction based revenues  Most of debt products can be handled based on blockchain “smart contracts” (they will be nearly free)  Clients can handle these debt products without a bank  Ca 1/2 of revenues in this category will be lost. Advise based revenues will remain.  Safekeeping fees will become obsolete (they will be free)  Investment advice / portfolio management revenues will remain  Circa 2/3 of these revenues will be lost through disintermediation. Advise based revenues will remain.  Fees for Financial products sale will become obsolete through blockchain functionality (they will be nearly free)  Transaction based revenues will become obsolete through blockchain functionality (they will be free)  Circa 2/3 of transaction based revenues will be lost in disintermediation. Advice based revenues will remain. Outcome  Disintermediation – client will need banks for advice, but not for debt products, safekeeping, financial products or transactions. Switching costs will be very low for clients.  Ca 2/3 of revenue basis will be lost to new Blockchain based Business Models within 5 Years Net revenue category Q1 2017 (mCHF) Timeline* Intermediation impact Net interest income 726 5 Years 50% Recurring commissions and fees 362 3 – 4 Years 66% Transaction-based revenues 280 3 – 4 Years 66% Revenues erosion through smart contracts Revenues erosion through digital asset transfers Revenues erosion through blockchain digital assets * Based on Morgan Stanley Adoption Roadmap ** Authors estimation 3
  14. 14. Blockchain Disintermediation – Client Facing Processes Number of monetizable processes decreases significantly 1st Level Category 2nd Level Category Impact through disintermediation Timeline Impact Client Opening Know Your Client (KYC) 3 - 5 Years Relationship Onboarding Product Opening Client Compliance Client Profile Updates 3 - 5 Years Regulatory Compliance Monitoring Flow of Funds Analysis / Anti Monay Laundry (AML) Regulatory Reporting (FATCA, AEI, Witholding Tax, MIFID) Client Tax Reporting Sales Management Product Sales to Client (depending on client domicile and client profile) 3 - 5 Years Client Pofitability Analysis Client Potential Aanlysis (Potential for new Revenues) Client Reporting Client Transactions Payments 3 Years Client Trading Portfolio Management Investment Policy Statement Creation / Review NA Investment Policy Execution Strategic Asset Allocation / Tactical Asset Allocation Portfolio Risk Monitoring Client Portfolio Review with Client 5 Years Credit Process Credit Request Review Client Credit Rating Calculation Credit Payback monitoring Credit default handling Client Closing Client Asset Transfer to another Banking Relationship No barriers for client switching 3 - 5 Years Impact through disintermediation is low. However, automated portfolio management solutions are coming (independently from blockchain) Credit Processes can be handled with blockchain based smart contracts Client has his digital assets in blockchain. Most of services are free for him and he can easily switch between service providers Client has his digital assets in public blockchain, which translates into increased regularory transparency Most of products are free for client Client can freely switch between service providers, no barriers for client switching Digital assets transfers are nearly free on public blockchains 3
  15. 15. Strategic Positioning Traditional banks Do Nothing Strategy (240+) Product Offering Capability Extended Gradual No offering No capability Wait and See Strategy (<10) Gradual Integration Strategy (2 + 2) All In Crypto Finance Strategy (0) Small Gradual Extended Passive strategy • Switzerland has ca 250 regulated banks • 2 banks of 250 banks have announced their gradual integration strategy (Falcon PB and SwissQuote) • UBS and CS are working on some in-house projects too  The competition in this are is practically missing Summary 3
  16. 16. Blockchain adaption Is there enough market already? Number of users • 16 million Bitcoin wallets by end of 2016 • One user can have multiple wallets • Not all users are using Bitcoin, but as well other crypto currencies  Lets calculate with 10 million user basis as per end of 2016 3 Potential ? Growth • Coindesk estimated 25% user growth per year (might be more in 2017 ) Scenario • Worldwide financial service A based on crypto • 5% of crypto users on platform  Results in 500’000 users on platform, growing 25% per year  Credit Suisse Switzerland has 1.3 million clients  Service A would have 1.5 million users in 5 years ?
  17. 17. Remittances Top Immigration Countries Source: Migration and Remittances Factbook 2016, World Bank, 2016. Martin Ploom – Blockchain use cases in Finance 4
  18. 18. Remittances Trends Source: Migration and Remittances Factbook 2016, World Bank, 2016. Martin Ploom – Blockchain use cases in Finance 4
  19. 19. Remittances Ecosystem Martin Ploom – Blockchain use cases in Finance 4
  20. 20. Cross Border Payments (1) Martin Ploom – Blockchain use cases in Finance 5
  21. 21. Cross-Border Payments (2) Cross Border Payments Micro-Payments Martin Ploom – Blockchain use cases in Finance 5
  22. 22. Portfolio Management of Digital Assets Asset Management Transformation Digital Asset Registry Portfolio 1 Portfolio 2 Digital Asset 1 Digital Asset 2 Digital Asset … Digital Asset N Portfolio … Portfolio N Asset Manager 1 Asset Manager N Asset Manager … Which role will Banks have in Transformation ? How will Banks transform ? TBTF provisions ? How can client move to another Asset Manager ? Could Smart contract become an Asset Manager ? Martin Ploom – Blockchain use cases in Finance 6
  23. 23. Settlement and Clearing / Post-trade Martin Ploom – Blockchain use cases in Finance 7
  24. 24. Trade Finance (1) Martin Ploom – Blockchain use cases in Finance 8
  25. 25. Trade Finance (2) Martin Ploom – Blockchain use cases in Finance 8
  26. 26. Summary As IS Operating Model 1. Look on the Ecosystem 2. Focus on characteristics of high-value use cases 3. Look on the end-to-end Business Process 4. Look on the pain points in the end-to end Business Process 1. Ecosystems will transform – probably several participants are getting disintermediated 2. Business Processes will stay. They will just become more effective Martin Ploom – Blockchain use cases in Finance 9 Implications Analysis
  27. 27. Appendix Blockchain Disintermediation
  28. 28. https://blockchain-business.com How finance will be impacted from the blockchain 1
  29. 29. Morgan Stanley: Adoption Roadmap

×