Legacy Systems! Integration! Security Firewalls! Regulatory! Here are just some of the reasons banks are struggling with their blockchain implementations. Why are so many POC’s taking so long to get to production? Because the POC’s are not answering all the questions the business needs to address before getting additional funding for a production release.
This is becoming an all too familiar scenario within the banks. When Blockchain companies were identifying Use Cases, they were basing the assumption on systems and processes that were well known by the SME’s. The Blockchain companies probably had founders and staff that come from the banking world and clearly understood how these systems and processes work.
But like everything else in tech, there is more to a solution than just the technology. And because this is true in the banking world, these challenges cause major delays in production deployments.
So how can the banks better prepare for a Blockchain initiative?
Well let’s be clear about a few things:
(1) even though a bank is willing to fund a POC, it doesn’t mean they are prepared to fund a production deployment;
(2) because a bank has funded a POC, they usually have high expectations that this solution can be done for them with minimal costs and risk moving forward towards a production deployment.
Does this sound like 2 conflicting positions? Well they are but that is just how banks and businesses think today.
The problem is understanding what the bank is truly looking for? And the answer is simple:
(1) The most value,
(2) for the least risk,
(3) with the lowest cost,
(4) with the highest return.
With this in mind, very rarely, if ever, can all 4 of these be achieved. But what is important is that the Solution Provider has addressed these 4 areas prior to implementation. This why GPMS offers the Blockchain Assessment program prior to any POC.
By the bank first leveraging the GPMS Blockchain Assessment, a few things can be achieved at a very early stage. The first thing that is identified beyond the high-level scope, is the feasibility of a Blockchain deployment within the current infrastructure. The second component is from a business/partner perspective: can all the trade partners or a great percentage of the trade partners participate in the Blockchain? Ever go to a manufacturing site that has no internet connectivity or ERP system? This is not an unusual circumstance but exists quite often and will prevent partner participation.
The third component is for the bank to understand is the governance, compliance, and regulations that must be in place to manage a Blockchain initiative with trade partners. The fourth is cost and return for the bank as well as the trade partners. When the bank can first understand these initial concepts, it becomes easier and clearer for them to make the type of decisions necessary to move for with a Blockchain initiative.
If your organization is interested in understanding more about Blockchain initiatives for Trade Finance or is interested in a Blockchain Assessment, contact us at email@example.com or
contact us on the web at http://www.globalpmsystems.com/contact-us/.
Thanks and we look forward to hearing from you. Cheers!