blockchain and distributed ledger technology in finance - research based analysis
TRANSCRIPT
![Page 1: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/1.jpg)
Blockchain and distributedledger technology in finance
- research based analysisIlkka Lähteenmäki
![Page 2: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/2.jpg)
- 20+ years in banking- Inc. 10+ years of financial research- 2011-2016 in Danske Bank
- Head of business development in PB- Head of strategy planning in FIN
- Partner in two start-ups- Since Oct. 2016 research network of FinTech- Together with the Bank of Finland and
Ministry on Finance a FinTech Institute- Ph.D. about banking development &
partnerships- 7 journal & conference publications
![Page 3: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/3.jpg)
• Independent think tank• Academical foundation• FinTech research and business development hub• Researchers, incumbents, start-ups, regulators• Bank of Finland and Ministry of Finance• Coordination, education, research• Up-to-date Finnish FinTech status• International co-operation
![Page 4: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/4.jpg)
![Page 5: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/5.jpg)
Our research network
FinTechcausationresearch
Aalto Hanken
Lappeenranta Universityof Technology
University of Oulu
Hanken
University of Tampere
University of St.Gallen
FinTech
ManagementMentalModel
Customers,Data,Insurance
Customervaluecreation
![Page 6: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/6.jpg)
FinTech causation research
Financial business:- Business models- Competencies- Competition- Co-operations- Management- Customer experience- Value creation- Partnerships
![Page 7: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/7.jpg)
SummaryCurrent bankingprocesses:- Rife with problems- Regulatory costs- Inefficiency- Digitally wrapped- Centralized- Exclusionary
Blockchain or DLT?- to do more with
less- streamline their
businesses- and reduce risk in
the process
Blockchain- contracting, clearing, settling,
and record-keeping tasks - forge agreements, make
transactions, and build value - to verify their identities,
establish trust, or perform the critical business logic
Industry change- DAOs
DLT- identity and reputation, moving
value (payments and remittances), storing value (savings), lending and borrowing (credit), trading value (marketplaces like stock exchanges), insurance and risk management, and audit and tax functions.
Business model changeand ecosystemimplication
![Page 8: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/8.jpg)
Blockchain in current banking processes
Source: Boston Consulting Group
![Page 9: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/9.jpg)
Blockchain is not hype anymore
Source: IBM Institute 2016
![Page 10: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/10.jpg)
R3CEV
![Page 11: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/11.jpg)
![Page 12: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/12.jpg)
Trade finance
The new platform helps optimise internal processes for banks and reduces the risk of documentary fraud, but the key cost efficiency is in speeding up the time it takes to complete a trade transaction – from as many as 20 days, to just a few hours.
Loading the goods, issuing invoices, dealing with home bank, getting recommendations checked, sending the paperwork and getting it endorsed by the importing bank. In the worst case scenario, it can take 20 days. Since all this is physical, it’s really difficult to accelerate that process.
![Page 13: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/13.jpg)
Significant part of the change is made by start-up firms
![Page 14: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/14.jpg)
Status right nowsolutions for authentication, blockchain-as-a-service, open-source blockchain, application development, mobile wallets, compliance, trading and investment
![Page 15: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/15.jpg)
FinTech synergy
API andopen banking
3rd partyapplications
FinTech
Banking-as-a-service
Platformeconomy
Genericplatforms
IoT
Banking-in-a-service
DAOs
ReplacedBankingServices
Value delivery level
![Page 16: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/16.jpg)
Blockchain and DLT as an architecture
![Page 17: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/17.jpg)
Managers’ mental model is the mostcritical obstacle
DOT-model(Holmlund-Strandvik-Lähteenmäki, 2015, 2016, 2017)
![Page 18: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/18.jpg)
Do not neglect Bitcoin
![Page 19: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/19.jpg)
Banking is only contextual
https://smartlog.kinno.fi/
![Page 20: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/20.jpg)
Customer value creation
Value creation spheres
False True
Value:- Value-in-production- Value-in-use- Co-creation- Service dominant logic- Customer dominant logic
![Page 21: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/21.jpg)
History view
Salaries online
ATMs
Tele-banking
PC-banks
Internet banking
Mobile
60´s
70´s
80´s
90’s
2000’s
2010’s
Apps
50´s
FinTech
Screenscraping
![Page 22: Blockchain and distributed ledger technology in finance - research based analysis](https://reader031.vdocument.in/reader031/viewer/2022030309/58f259321a28aba27e8b45b5/html5/thumbnails/22.jpg)
Thanks!