According to a study by the international rating Agency Moody’s, despite the fact that the technology of the blockchain has the potential to substantially reduce the costs of cross-border banking transactions, active implementation of the blockchain in the financial sector can greatly reduce the Commission fees of banks.
Introduction of technology of the blockchain in financial sector will greatly enhance the efficiency of banking transactions but it will also reduce the cost of fees. For those banks where these charges constitute a significant portion of revenue – this will increase the level of their business risks. For example, the most exposed to these risks, Swiss banks, where fees is about half of their income. Followed by canadian, Italian and Israeli banks, where fees account for about 35% of their income.
«From the point of view of efficiency, cost savings and risk reduction – the technology of the blockchain is a smart choice for banks. But the introduction of these technologies also reduce the fees for processing transactions that may significantly affect the income,» — said the managing Director, Moody’s Colin Ellis (Colin Ellis).
The Moody’s report also says that the most vulnerable banking system with a significant share of international transactions in countries such as the UK, Belgium and Switzerland.
«Despite the fact that cross-border transactions will become cheaper and faster, these improvements greatly reduce Bank charges and fees, which ultimately will adversely affect their creditworthiness,» — said in the report.
But even a possible reduction in income is unlikely to banks will be sufficient cause for rejection of the developments in the field of blockchain. To ignore technology they can’t, because if she doesn’t use them, it will make numerous startups and more innovative banks whose business will suffer less from lower fees for transfers.