Blockchain could help investment banks not only reduce costs, but also create new products and services. The question is how. Learn more: https://www.accenture.com/us-en/insight-investment-bank-challenge-10-distributed-ledgers?c=fs_cmfy17sldshr_10000010&n=smc_0517

1. 10TOP 10
CHALLENGES

2. CHALLENGE 10 - Top 10 Challenges for Investment Banks
CHALLENGE 10
USING DISTRIBUTED
LEDGERS:
BLOCKCHAIN MOVES
TO EARLY ADOPTION
TOP 10 CHALLENGES FOR
INVESTMENT BANKS 2017
#IBTOP10
2

3. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
3
01
02
03
04
05
06
07
08
09
10 GETTING FIT
AUTOMATION
LOCATION
STRATEGY
DIGITAL
TALENT
CLIENT EXPERIENCE
JOURNEY
TO CLOUD
INNOVATION
RESEARCH
FUNCTION
BLOCKCHAIN
PRUNING FOR GROWTH

4. CHALLENGE 10 - Top 10 Challenges for Investment Banks 4
BLOCKCHAIN HAS THE
POTENTIAL TO IMPROVE
PROCESSES AND DRIVE
SIGNIFICANT COST TAKE OUT
ACROSS AN INVESTMENT
BANK’S OPERATING MODEL

5. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
5
Key benefits of blockchain
Secure and shared
transaction ledger
“Trusted” third
party elimination
Automation
Robustness
Cost reduction
Regulatory
coverage
BETTER
CUSTOMER
EXPERIENCE
WITH
REDUCTION
IN COST

6. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
6
2015 2016 2017 2018
The journey to blockchain in capital markets
EXPLORATION &
INVESTMENT EARLY ADOPTION
GROWTH

7. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
7
Three questions to ask
As the industry moves into the next phase of adoption,
investment banks need to ask themselves:
WHAT BUSINESS PROCESSES WILL BE IMPACTED
BY AN INDUSTRY SHIFT TO BLOCKCHAIN?01
WHAT ARE THE OPERATING MODEL
OPPORTUNITIES AND IMPLICATIONS?02
WHAT ABOUT REGULATION?
03

8. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
8
REDUCE
COSTS
OPTIMIZE
DISTINCT
OPERATIONAL
PROCESSES
CREATE NEW
PRODUCTS AND
SERVICES
Blockchain has the potential to help investment banks:

9. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
9
INFRASTRUCTURE HUMAN CAPITAL MIDDLE AND
BACK OFFICES
Compatibility of
legacy infrastructure
and distributed
ledger models
New expertise
and skillsets Computing power
and data center
management
But blockchain adoption will also have important implications for
investment bank operations:

10. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
10
A new regulatory environment?
Some central banks and regulators have expressed some
optimism about blockchain, but the future of the regulatory
landscape remains uncertain.
That leaves lots of questions for banks:
HOW WILL STANDARDS
BE CREATED?
ANY BY WHOM?
01
HOW WILL
GOVERNANCE MODELS
BE STRUCTURED?
02
WHAT ABOUT
ASSETS THAT ARE
TRANSACTED BOTH
ON AND OFF CHAIN?
03
HOW WILL REGULATORS
BALANCE PRIVACY AND
TRANSPARENCY?
04

11. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
11
Five steps to get ready for blockchain
01
Replace existing infrastructure
Where do you see blockchain and distributed ledger
technologies improving your processes in the short
term? In the long term?
What infrastructure changes will you need to make?

12. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
12
Five steps to get ready for blockchain
02
Create a working group
A dedicated group could:
STUDY NEW TECHNOLOGIES
UNDERSTAND THEIR POTENTIAL
EVALUABLE THE BENEFITS
OF IMPLEMENTATION

13. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
13
Five steps to get ready for blockchain
03
Identify high-priority processes
What are your biggest pain points? The
processes that require your immediate attention?
Start exploring blockchain feasibility and
readiness there.

14. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
14
Five steps to get ready for blockchain
04
Create a plan for developing
and testing prototypes
How will you measure the success or failure
of prototypes?
What’s your plan for scaling successful prototypes
with minimal disruption to clients and operations?

15. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
15
Five steps to get ready for blockchain
05
Be aware of the regulatory environment
How is the regulatory and legislative
environment evolving?
Does it make sense for your organization to get
involved and help shape those discussions?

16. CHALLENGE 10 - Top 10 Challenges for Investment Banks
USING DISTRIBUTED LEDGERS:
BLOCKCHAIN MOVES TO EARLY ADOPTION
16
Blockchain holds great promise for
cost reduction and the creation of
new products and services in capital
markets, but it’s not a panacea.
Investment banks need to identify
which processes could benefit most
from adoption, and have a bold vision
and practical plan for managing
technology needs, human capital
changes and regulatory demands.

17. CHALLENGE 10 - Top 10 Challenges for Investment Banks
TAKE THE
NEXT STEP
17
www.accenture.com/10challenges