Santander: Distributed Ledger Tech Could Save Banks $20 Billion a Year


Santander: Distributed ledgers are key. Photo: The Fintech 2.0 Paper

The next wave of financial innovation “will deliver fundamental changes to the infrastructure and processes at the core of the financial services industry,” argues a new paper published this week by Santander InnoVentures.

But it will only be achieved—what the report dubs “Fintech 2.0”—if banks and the latest generation of fintech startups constructively collaborate. While new ventures have flexibility and nimbleness to experiment, banks can offer “immediate scale and critical mass through access demand.”

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The report, published in collaboration with Oliver Wyman and Anthemis Group, dives into the emerging technologies that will lead the way. Along with the “Internet of Things” and smart data, distributed ledgers were highlighted:

Commercial banks, central banks, stock exchanges and major technology providers, such as IBM and Samsung, are all exploring the potential uses of distributed ledgers.


It is only a matter of time before distributed ledgers become a trusted alternative for managing large volumes of transactions.

In all, “distributed ledger technology could reduce banks’ infrastructure costs attributable to cross-border payments, securities trading and regulatory compliance by between $15-20 billion per annum by 2022,” the report suggests, echoing the sentiments of the recent research paper published by the European Banking Association, which similarly concluded that distributed ledgers were a driving innovation in the space.

Download the full paper here: The Fintech 2.0 Paper—rebooting financial services

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