Big Banks Enter Blockchain: What Does It Mean?
Blockchain was once a niche technology known only to a few, but today it’s grown to become an astonishing innovation that’s recognized around the world for its business potential. Though accountants once had to pay little attention to blockchain, they now must dedicate sizable portions of their time and attention to learning about it, especially now that big banks are finally beginning to realize the potential of harnessing the power of blockchain-based solutions themselves.
Here's what the rise of big banks on the blockchain scene may mean for accountants around the country, and how blockchain is expected to keep changing in the next few years.
Banks are finally noticing blockchain
Blockchain, a decentralized ledger technology that’s currently fueling the rapid rise of cryptocurrencies like Bitcoin, was once entirely ignored by big banks, and indeed by most of the financial and tech world. Over the past few years, however, blockchain has been thrown into the public spotlight, and banks are finally noticing it. Deloitte’s predictions have the blockchain market continuing to swell in size over the next few years, too, so we can likely expect this trend of blockchain becoming more mainstream to continue for some time.
What does that mean for accountants? First and foremost, it means the monopoly they and a handful of tech gurus enjoyed over blockchain solutions is about to come to an end. The financial world will be utterly rocked by the widespread adoption of blockchain technologies, and savvy accountants who don’t want to find themselves getting left behind need to start adapting if they want to remain viable in the market for long. This is because blockchain, like virtually all new technologies, will help automate existing processes that are currently dominated by human employees.
Essentially, the digital nature of blockchain is going to take many existing processes in the financial world and supercharge them. Settlement periods will be drastically shortened, and banks will find it easier and easier to communicate and make deals with one another over digitally encrypted channels. If accountants want to remain attractive to potential clients, be they banks or individuals, they’ll need to keep up with this rapid digitization trend that’s already begun to take hold in the market.
Consider all of the ways that big banks are already using blockchain-based business solutions every day, and you’ll see how imperative it is for financial professionals to get moving as it pertains to educating themselves about these new technologies. Identity verification, long-term financial management, and the widespread rise of disparate cryptocurrencies are all going to buffet the accounting industry and financial world with serious changes.