If the financial services industry is banking on blockchain as the basis for new service innovation, it will be sorely disappointed. Blockchain’s design principles are completely at odds with those of the industry, and the technology is fraught with flaws that could be catastrophic for financial institutions.
I’ll come on to why in a moment. Clearly, there is a lot of hype and momentum around blockchain. WANdisco sees this first hand: We’re increasingly being approached by banks that think this is the kind of thing we do (it isn’t). And why are they interested? Because senior directors and investors have heard the buzz and concluded that this is something they need—that if they don’t seize the opportunity, they’ll miss out. They’re wrong. Banks need blockchain like a hole in the head.