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Financial institutions want to increase their spending on blockchain technology in the future

Many financial institutions stand ready to increase their blockchain technology spending in 2021. According to an upcoming Deloitte poll entitled “Outlook of the financial services industry for 2020” (Outlook for the financial services industry in 2020).

Preliminary results shared with Cointelegraph indicate this 27% of the surveyed institutes expect a “slight increase in expenditure” for technology-based solutions and distributed ledgers, while 14% expect a sharp increase. Another 33% don’t expect any change and the remaining 27% are trying to cut their spending slightly.

The survey was conducted between July and August 2020. The respondents included 800 executives from financial institutions: banks, payment companies, insurance companies, hedge funds, and other investment companies. Companies had to generate at least $ 1 billion in revenue in 2019 to participate in this survey.

Financial institutions want to increase their spending on blockchain technology in the future
Financial institutions want to increase their spending on blockchain technology in the future

The study grouped blockchain with a variety of other emerging technologies. Although it wasn’t the most popular in general, Blockchain technology seems to be a highly polarizing topic: the percentage of institutions that expect a sharp increase in spending is the second highest in the sample, only that edge computing slightly outperforms it at 15%.

Vice versa, The automation of robotic processes left more institutions unimpressed. 35% of them expect to reduce their costs. Artificial intelligence is just under a third. 26% of the companies surveyed expect to reduce their investments in them.

Financial institutions could also seek investment in privacy and cybersecurity where they could Use different blockchain-based solutions.

Comment on the report, Richard Walker, Head of Deloitte’s Blockchain Financial Services Team, He said 2021 will be “a successful year for blockchain and distributed ledger technologies”.

After years of promises and expectations “People will be amazed at the speed and impact that will be felt in this area over the next year,” he added.

The report is the continuation of a equally positive survey from Deloitte in February, It indicated that 39% of companies around the world had already built blockchain technology into their production.

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