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2016
Blockchain: the revolution is underway

With Nilesh Vaidya,
Head of Banking and Capital Markets Consulting & Solutions at Capgemini

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Blockchain: the revolution is underway

Blockchain technology is set to revolutionize the flow of transactions and the daily lives of hundreds of millions of people around the world. Capgemini has already begun designing blockchain solutions for banking and financial services.

15 to 20 billion dollars
Projected savings for the banking sector by 2022 thanks to blockchain technology.

A revolutionary blockchain

It’s being hailed as a revolution—a major technological breakthrough,” says Nilesh Vaidya, Vice-President of Capgemini Financial Services. Blockchain technology will shake up just about everything, especially the financial sector. But what is it exactly?

Simply put, this technology allows you to record transactions in decentralized digital registers that are simultaneously saved and updated on a computer network,” explains Nilesh Vaidya. “Each transaction, represented by a ‘block’, is linked to the next one and added to the ‘blockchain’ once it is verified by network members. Any update is applied across the entire network, without the involvement of a central authority.”


Banks and insurance companies can no longer afford to ignore the blockchain. This technology will completely transform the industry’s business model.
Nilesh Vaidya

What are the advantages? Greater transparency, for a start, since data is accessible to all users. Another benefit is robust security. The network is much more difficult to hack since any validated data is impossible to modify. “The blockchain is a vast digital registry that records every exchange between users since its creation. Furthermore, users themselves perform validation and authentication. This means transactions are fully secure and impossible to tamper with,” adds Nilesh Vaidya. Finally, the technology enables tailor-made services to be offered to customers.

This is indeed a technological breakthrough, at a pivotal time when online financial transactions are taking off. It’s no coincidence that this is the technology underlying Bitcoin, an electronic currency that first appeared in 2009. Neither issued nor overseen by a central institution, Bitcoin is managed by a network that is, in a sense, self-governed.

100
Number of blockchain specialists Capgemini plans to mobilize.

À la carte services

Now, the goal is to implement blockchain technology within banking and insurance groups. This is what motivated Capgemini to develop its own blockchain solutions for banking and financial services in 2016. “We developed four different solutions. The first is designed to expand loyalty programs for credit and debit cardholders. The second focuses more on creating new retail banking services. The remaining two are devoted to commercial banking services and international transactions,” says Nilesh Vaidya. “Today, all financial operations are validated centrally and involve numerous intermediaries. By decentralizing validation, we intend to cut out the middlemen and settle transactions in minutes or even seconds. This will result in substantial cost savings.” For example, customers enrolled in loyalty programs will have direct access to a vast network of suppliers and service providers. The obvious challenge for banks is to build customer loyalty by offering them more diversified, responsive, and secure services.

By offering a decentralized system that reassigns authority to network users, blockchain represents a breakthrough on par with the birth of the internet or the printing press.Nilesh Vaidya

Talkin’ about a revolution

The Group is currently in discussions with several industry powerhouses. “We can provide a full range of consulting and technology services to roll out tailored solutions for our clients. The most exciting thing about this technology is that it opens up an almost infinite number of possibilities in terms of services. The future of banking is wide open!”

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