

Blockchain Tech Can Save Banks $20B a Year - cdvonstinkpot
http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/?utm_content=buffere8f19&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

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NeutronBoy
As someone who's worked in banking tech, I can assure you the banks know that
the infrastructure and tech they have isn't cheap to run, and that it could be
done cheaper. The problem is that the immense complexity that exists in these
environments makes it so incredibly complex and costly to migrate that it's
almost impossible to do. One of the biggest banks in Australia has spent _over
$1 billion_ [1] on upgrading its core banking system and it's still not done.

It's not just the tech. It's not just the account data. It's complex business
rules, it's reporting (internal and external), it's legislative requirements,
it's integration with thousands (not exaggerating) of other systems
internally, up to hundreds externally, it's about legacy products from 30
years ago which are still on the books, etc.

[1] [http://www.itnews.com.au/News/256341,cba-goes-real-time-
as-p...](http://www.itnews.com.au/News/256341,cba-goes-real-time-as-part-of-
core-banking-upgrade.aspx)

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cdvonstinkpot
Sounds like a startup opportunity to build what they need.

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dpc_pw
Being Bitcoin entusiast, IMO blockchains provide no benefits for banks.
Blockchain is actually very ineffective protocol/data structure, and the
reason Bitcoin uses it is because it provides pseudo-anonymous network that
removes need for trust. Also Blockchain can be trusted only combined with
underlying unit of motivation and currency: Bitcoin (or other coins). Banks
don't need pseudo-anonymity and can provide some level of trust. Protocols
like Stellar / Ripple / Open Transactions and other non-blockchain digital
accounting technologies are much better suited for banks.

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thomasfl
Could someone on HN point me to a good article or vidoe on blockchain tech?

