Abstract
PurposeThe study aim is to evaluate the contribution of Blockchain technology (Cryptobanking) using expected operating model (EOM) to address the pain points in reconciliation at middle and back-office operational levels in assessing the significance of this technology on return on investment.Design/methodology/approachA structured questionnaire was designed to collect primary data using a stratified sampling method from 120 respondents working in leading Investment banks operating in the geographical locality of urban Bangalore. Demographic variables, accounting variables, data reporting variables, approach variables, variables of EOM were considered to validate the hypothesis with the help of statistical tools, namely ANOVA, and Multiple Stepwise Regression Analysis.FindingsThe results obtained confirm that there is significant difference in reconciliation with implementation of an innovative business process. Financial analysis is the highest predictor of ROI when integrated with technology as the adapted Blockchain innovation in reconciliation is the most influencing factor in enhancing, improving ROI playing a pivotal role in the Investment banks.Originality/valueBlockchain technology (Cryptobanking) facilitates in transforming the reconciliation process of these banks with improved operational efficiency. Blockchain and settlement platforms offer inter-organization solutions facilitating in the reconciliation of various transactions in real-time through a trust-based network in the form of digital settlements with better consortiums.
Highlights
Investment banks play a significant role in the economic development of a nation
Many industries embrace the blockchain technology due to its promising and crucial role in restructuring their business process primarily targeted toward process efficiency, cost-effectiveness and time saving with the potential to operate the business in real-time to curb the pain points of reconciliation at the middle and back-end levels by investment banks
Gender reflects that 54.2% of the employees are male with 44.2% as females. 84.2% of the respondents fall within the age group “18–25 yrs”, 11.7% are within “26–35 yrs”, 1.7% within “26–45 yrs” and only 2.5% respondents are aged above 46 yrs. 75.8% of the employees are undergraduate, whereas 20% are postgraduates working across various levels of operational segments. 51.7% of the employees earn an annual income of less than Rs. 100,000, 23.3% earn between “Rs. 200,000–500,000 lakhs”, 15% between “600,000–900,000” and 10% earn above Rs. 900,000 lakhs
Summary
Investment banks play a significant role in the economic development of a nation. They often deal with voluminous data at various levels of operations across the globe as an integral part of their banking business. Many industries embrace the blockchain technology due to its promising and crucial role in restructuring their business process primarily targeted toward process efficiency, cost-effectiveness and time saving with the potential to operate the business in real-time to curb the pain points of reconciliation at the middle and back-end levels by investment banks. The mentioned technology has its applications in investment banking in the form of interbank transactions, smart contract enforcement, remittance, regulatory reporting, cryptobanking, record sharing with storage, trade finance, data security, clearing with the settlement, increasing transparency, loan syndication, serving unbanked, know your customer (KYC) and anti-money laundering (AML). There are numerous challenges concerned with inter-entity reconciliation, which arise due to many reasons like lack of quality information, reporting
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