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Price Declines Imminent in Transaction Banking

Distributed ledger technology has the potential to reduce trade finance operating costs by 50% to 80%.

스냅차트

Price Declines Imminent in Transaction Banking
Price Declines Imminent in Transaction Banking
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Distributed ledger technology, if fully adopted by all participants in the trade ecosystem, has the potential to reduce trade finance operating costs by 50% to 80%, Bain & Company estimates. DLT will also spur three- to fourfold improvements in turnaround times, depending on the trade finance product involved. In fact, new digital technologies are starting to automate the manual, paper-intensive processes involved throughout the broader field of transaction banking. That dynamic, combined with heightened competition, will likely cause a structural decline in prices. With so many banks forecasting share gains in the transaction banking market, the numbers just won’t add up for everyone. To succeed, individual banks will need to retool their IT systems, attract new types of talent and step up their ability to work with external partners.

Read the related Bain Brief: Wolf in Sheep's Clothing—Disruption Ahead for Transaction Banking

Ada Di Marzo and Sen Ganesh are partners in Bain & Company’s Financial Services practice.

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