Blockchain: Back to Basics
While blockchain innovation spend is anticipated to reach $400M by 2019, projected savings could be in the billions. Industries like trade finance, insurance, and financial services where fraud is a major business concern, see billions of dollars of annual losses due to fraud. Trade finance fraud is an estimated $14 billion a year and insurance claims fraud has been estimated by the Coalition for Insurance Claims Fraud to have reached $80 billion dollars a year. Blockchain is one of many technology approaches businesses can be considering to gain increased transparency into, control over, and trust across their networks.
In areas like Trade Finance, for example, where “double spend” is a major cause of fraud, distributed ledger technology (DLT) can be used to transform the Letter of Credit issuance, providing real-time visibility into when a letter of credit has been issued and used so it cannot be used multiple times.
Know Your Customer (KYC) is another area where Corporates are spending $50,000-$100,000 per client to process KYC data, which at scale is a significant spend. Blockchain has the potential to replace the current utility model, over time, and offer self-sovereign KYC.
At Synechron, we’re innovating with financial services and insurance clients around the world to apply DLT to create Distributed Applications (DApps). Learn more about our Blockchain COE, our KYC project with R3, and other industry-leading projects.