Blockchain technology can reduce cost in cross-border banking transactions: Moody’s

Cross-border banking transactions are expected to become faster and less expensive with Blockchain technology.

By: INDO ASIAN NEWS SERVICE
| Updated on: Aug 19 2022, 22:34 IST
Blockchain technology could, at the same time compress banking fees and commissions.
Blockchain technology could, at the same time compress banking fees and commissions. (AFP)

Blockchain technology has the potential to significantly reduce the costs and time involved in cross-border banking transactions, increasing banks' efficiency but putting pressure on their fees and commissions, Moody's Investors Service said in a report in London on Tuesday.

Moody's report focuses on two specific areas in order to assess the potential disruption that Blockchain could cause - cross-border transactions and fee and commission income. The report notes that these are just two of the channels through which the technology is likely to impact bank operations.

You may be interested in

MobilesTablets Laptops
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
15% OFF
Samsung Galaxy S24 Ultra
  • Titanium Black
  • 12 GB RAM
  • 256 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
8% OFF
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

However, the report said, while making cross-border transactions faster and less expensive would be credit positive for banks, these efficiencies could also compress their fees and commissions, a credit negative.

Also read
Looking for a smartphone? To check mobile finder click here.

"Blockchain has the potential to substantially change how a wide range of financial services are executed. Banks could benefit significantly from the development and implementation of blockchain technologies in terms of enhanced efficiency, cost savings and risk reduction," said Colin Ellis, Moody's Managing Director -- Credit Strategy and the report's co-author.

Banking systems with significant cross-border transactions -- including those in the United Kingdom, Belgium and Switzerland -- may see the most disruption from the technology that underpins crypto-currencies such as Bitcoin, the report said.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 17 Apr, 15:06 IST
NEXT ARTICLE BEGINS