According to a senior official of Japanese financial services behemoths, Sumitomo Mitsui Banking Corporation (SMBC), distributed ledger technology (DLT) is shifting perspective from business to consumer (B2C) towards business to business (B2B). As reported by a local media outlet, the Deputy President and Head of Global Business at SMBC, Mahasiko Oshama claimed that crypto-activities consisted of B2C lately, but focus is extending towards B2B.
During the Blockchain function co-hosted by Nikkei media group and Financial regulatory services, the SMBC official said embracing Blockchain technology could enable financial institutions to strengthen their internal operations and offer improved services.
According to Oshima, information technology impacts how business activities are carried out in most business sectors and in our way of life. Value addition for customers in the financial industry will be enabled by including modern technologies, for instance, Blockchain.
Additionally, the impact of the bank’s Blockchain-based activities will be experienced in ten years since banks have a long run approach on business development matters. Moreover, Blockchain initiatives are capable of reshaping several businesses around the financial sector.
Blockchain B2B volumes to grow exponentially
Blockchain transactions on business to business inter border payments is expected to grow exponentially from $171 billion this year to over $ 4 billion in the coming few years.
A report disclosed by Juniper’s research shows Blockchain-based systems will enable financial institutions to save $7 billion in the next four years. The report indicates Blockchain transactions are characterized by real-time payments, transparency, computerized knowledge of your checks based on self-autonomous identity, and lower cost.
Morgane Kimmich, the research author, stated Blockchain execution is a plan for financial institutions to transform business digitally. Stakeholders will be facilitated by Blockchain to cut operation costs in this aggressive market that is highly commoditized.
Visa B2B connect powered through Chain Core DLT
A report released by an international payment technology company Visa, indicates Visa B2B connect program that Visa is creating will allow financial institutions internationally to transact business to business transactions quickly, safely, and efficiently.
Chain core, a Blockchain software program that allows financial payments on restricted Blockchain networks, will help Visa create Visa B2B connect. Chain core gives Visa a vast chance to make an actual transaction system configured for moving large amounts of global transactions among active banks in favor of their customers.
Visa B2B connect will be instrumental in Visa’s objective to upgrade business to business payments through the provision of enhanced delivery time, transparency of the payment system, and fair costs. Investment in Bitcoin Up and funds needed for transactions in the banking industry will be curtailed significantly.
As per the report, Visa b2b connect is surging competition on Ripple that has dominated the market since 2020. Visa will need to engage with IBM to affirm its global position by incorporating Blockchain in cross border transactions.