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

IANS  |  London/ New Delhi 

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, said in a report in on Tuesday.

Moody's report focuses on two specific areas in order to assess the potential disruption that 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 operations.

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.

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

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

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 13:44 IST
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