One of the biggest threats to the banking sector today is technology. Whether it is coming from large technology firms such as Google Inc. (GOOG), Apple Inc. (AAPL), eBay Inc. (EBAY) or Amazon.com Inc. (AMZN), or from new financial technology (FinTech) start-ups, traditional banks are beginning to taking notice. One potential disrupter for the financial industry today comes from applications involving blockchain technology — the tamper-proof system of distributed ledgers which underlie cryptocurrencies such as Bitcoin. Large financial institutions, from investment banks to stock exchanges to central banks, are all beginning to work on their own blockchain-based solutions in order to stay on top of this innovation. (For more, see: Technology, The Biggest Threat to Banks.)
Banks are Taking Notice
Before looking at just how blockchain technology can disrupt traditional banking, it is worth taking note of some the key institutions that have publicly announced interest in it (meanwhile, many other banks are doing so without informing the public). (See also: How Will Bitcoin 2.0 Change the World)