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Banks and Blockchain

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Dheepak Rajoo, SVP, Head of IT, RBL Bank

The concept of banking in India could be traced back to the Vedic period (700-100 BCE) and has evolved since. It continued to exist in the medieval period and colonial era. Modern banking emerged in the 18th century withstanding massive changes and advancements until today!

Blockchain: The buzzword heard and pronounced in the boardroom of every established organization, enterprise, or startup in recent times.

As is popularly known, the mainstream interest in blockchain began after 2008 when Satoshi Nakamoto developed the world’s first electronic payments from one party to another without going through a financial institution.

"A blockchain is a new type of database that enables multiple parties to share the database and to be able to modify that in a safe and secure way

even if they don’t trust each other", - Gideon Greenspan, CoinSciences (Multichain) CEO.

So, understanding these two subjects (banks and blockchain) under the context of technology does need some logical dissection.

The Demographic and Cultural Gap: Banks and Blockchain

This topic (Banks and Blockchain) is a classic example of the clash between baby boomers and millennials who often have conflicting approaches in problem solving.

banks are prudent about sharing their data as they do not want to compromise on the foundations of trust and confidentiality

Forbes reported that by 2025, 75 percent of the workforce will be represented by millennials outnumbering other generations. But since the C-suite roles are dominantly occupied by baby boomers, cultural and demographic differences set the perfect room for conflicting views and approaches.

A 2020 study points out Gartner’s report that 60 percent of big data analytics initiatives in banks fail due to lack of required skill, technical infrastructure, unsupportive senior executives, and inappropriate organizational culture.

Discussion:
Technology (blockchain) is eager to reinvent IT infrastructure, data, information, governance, and assets. But, banks are prudent about sharing their data as they do not want to compromise on the foundations of trust and confidentiality.

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