Riding the Blockchain Waveblockchain360.se › wp-content › uploads › 2018 › 11 › ...Riding...
Transcript of Riding the Blockchain Waveblockchain360.se › wp-content › uploads › 2018 › 11 › ...Riding...
© CGI Group Inc.
Riding the Blockchain Wave Presented by: Nancy Amert, Director, Trade Innovation Lab at CGI November 13, 2018
© CGI Group Inc.
Where we are…
2
1. Top Blockchain/DLT Initiatives over the past year
2. ~1% of companies are actively using Blockchain/DLT
3. Top barriers: scalability + stability, security
4. Strong desire remains for Banks to cut costs, replace paper & reduce manual tasks
5. Road ahead: IoT + AI emerging as top Blockchain/DLT use cases for 2019
© CGI Group Inc.
2018’s Top Blockchain/DLT initiatives*
3
Banks Corporates Government Other 3rd Parties
Trade finance platforms • Major trading hubs develop
DLT-based trade finance platforms to facilitate domestic and cross-border trade in specific corridors
Trade platforms • Provide efficient post-transaction
mgmt. solution for physical energy commodities trading
Supply chain tracking solution • Provide ability to track movement
of goods
Supply Chain Financing • Provide one-stop credit
facilities with shipment booking
Trade platforms • Launch end-to-end digital
shipping information on platform
Leverage DLT to record movements of wellbore rock and fluid sample Ensure timely delivery
Form a consortium with other trading houses and banks to manage physical energy transactions
Provide end-to-end shipping information and automated trade paperwork services
Provide easy access to capital without collateral Ensure faster release of funds Develop a DLT based
Letter of Credit application to test with select corporates / shippers
Partner HKMA, 5 banks and Deloitte for POC using DLT platform for trade finance
Partner to form Global Trade Connectivity Network (GTCN) to digitalize trade finance between the two cities
HKFPCL
CGI
Open Account
Doc Trade
Trade 360
Voltron
Marco Polo
Banks lead DLT Trade Finance initiatives • Multi-bank JVs develop and
test private DLT networks • Large global/ regional trade
banks conduct bilateral POCs • Bank consortiums mobilized
by DLT infrastructure providers (e.g. CGI, R3, IBM)
*Not a fully inclusive nor exhaustive graphic – for discussion purposes only
© CGI Group Inc.
Blockchain/DLT solutions for Banking and Trade*
4
Trade 360
• Manage, track and protect trade transactions between SMEs
• Guarantee auto-payment when all agreements are met
• Manage documentary trade finance for SMEs, large
corporates globally Corda (R3)
Corda (R3)
Quorum
Skuchain
IBM
• Digitize and execute all documents involved in a full end-to-end trade transaction using Quorum technology
• Includes pre-sale term negotiation, issuance of Standby letter of credit/guarantee, presentation of documents
• Improve visibility into trade flows and simplify access to credit and risk mitigation services
Ope
n A
ccou
nt
Doc
Tra
de
Voltron
Marco Polo
INITIATIVE PARTICIPATING BANKS SOFTWARE DESCRIPTION
*Not a fully inclusive nor exhaustive graphic – for discussion purposes only
© CGI Group Inc.
2018’s Leading Bank-led Initiatives*
5
Voltron Marco Polo We.Trade Trade Information Network HKMA
Focus Traditional Trade Open Account Trade Finance Procurement Order-to-Cash for SME Optional SME Financing
Corporate Working Capital Optimization Open Account Trade
Services Letters of Credit Trade Document Digitalization
Open Account Trade Platform and Business Network Pre/Post Shipment Financing Open APIs and Core Infrastructure Factorin
Procurement Application SME Marketplace/Catalog SME Financing
‘Utility’ non-profit to create trade applications on an open structure
Pre/Post Shipment Financing
Geography Global Global Western Europe Global APAC
Customer Carriers, Corporates SMEs, Freight Forwarders
Corporates Mid-market SMEs
SMEs SMEs Large Corporates
Corporates SMEs
DLT Protocol R3 Corda R3 Corda IBM Fabric None Undecided
Tech Provider(s) R3, CryptoBLK, essDocs, Bolero, Intellect, CGI, BankTrade (TBC), Finastra (TBC)
TradeIX, R3 IBM None Undecided
Governance/BNO Universal Trade Network (TBD) Universal Trade Network IBM Swift Undecided
Number of Banks 12 11 9 (?) 7
Banks BBVA, HSBC, US Bank, Scotia Bank, ING, RBS, Intesa San Paolo, Mizuho, SEB
ING, BNPP, Commerzbank, RBS, Wells Fargo, BBVA, Barclay’s, Shinhan, CTBC, Bangkok Bank, Bladex, BCP, Natixis, Intessa San Paolo, Standard Chartered, SocGen, DNB, SEB, Danske, OP, Nordea
Deutsche Bank, HSBC, KBC, Natixis, Rabobank, SocGen, Unicredit, Santander, Nordea
BNPP, Standard Chartered, Citi Bank, Deutsche Bank, Santander, ANZ
HSBC, Stan Chart, DBS, Anz, Heng Seng, Bank of East Asia, Bank of China (HK)
Phase 2 pilots completed. Additional pilot phase to complete Q1 2019. Go Live 2019
Demo delivered at SIBOS; commercialize in Q1-Q2 2019
Prototype and Pilot Developed Target Q1 2019 NewCo established in Ireland
Demo delivered at SIBOS; NewCo to be established; commercialize in Q1 2019
RFP has been issued
Voltron Marco Polo We.Trade Formerly Project Wilson HKMA
*Not a fully inclusive nor exhaustive graphic – for discussion purposes only
© CGI Group Inc.
Future Ecosystem*
6
Direct ERP Connectivity
Future ecosystem will enable global interoperable business networks, allowing trade parties to connect, transfer assets and value across business networks – creating a “network effect”
*Not a fully inclusive nor exhaustive graphic – for discussion purposes only
© CGI Group Inc.
Today’s fragmented banking platforms and disparate solutions hinder visibility and efficiency
7
The challenge • Disconnected, specialist systems • Multiple parties; fragmented
processing • Costly and slow • Limited integration
Bank offerings and solutions today • Costly, non-collaborative • Lack standardization • Unnecessary complexity • Plagued by paper-bound
processes, digital islands • Slow, reliant on central
intermediaries • Even if digital, often multiple
systems required
Source: R3 consortium
© CGI Group Inc.
“Investor concern over the threat of new technologies is overstated.”-- Blockbuster analyst report 1999
8
• Banks are concerned and want to avoid being the next Blockbuster
• They are fighting FinTech, InsureTech and GovTech startups
• Cloud providers are also encroaching (e.g., Amazon bought Whole Foods. Google selling insurance).
© CGI Group Inc.
Gartner’s Hype Cycle
9
Widespread artificial intelligence, biohacking, new platforms and immersive experiences dominate this year’s Gartner Hype Cycle, but where is Blockchain?
Source: https://www.gartner.com/doc/3883991/hype-cycle-blockchain-technologies-
© CGI Group Inc.
The Road Ahead towards Mass Adoption…
10
Recent Executive Survey
1. Banking industry still sees itself as a future leader in blockchain
2. 38% are building awareness & getting educated
3. 11% Actively deploying
4. ~50% Experimenting with POCs
5. ~33% of executives thinks US is most advanced
6. Australia is somewhat more advanced than others
7. The U.K. and India have similar levels of expertise
Sources: https://underscore.vc/future-of-blockchain
https://www2.deloitte.com/nl/nl/pages/risk/articles/blockchain-technology-2018-global-blockchain-survey.html
© CGI Group Inc. 11
© CGI Group Inc.
Blended / hybrid, emerging tech use cases are increasing ...as banks drive to distinguish themselves as uniquely capable, digital leaders
12
Artificial Intelligence
Advanced Analytics
High Performance Computing
Internet of Things
(Smart Things)
Experience
Intelligent Automation
Smart Materials
Cloud Native Development
Applications
Cybersecurity
Blockchain/DLT
© CGI Group Inc.
Blending Blockchain/DLT with other emerging tech (e.g., AI, robotics, IoT sensors, video devices)
• It is not just about Blockchain/DLT nor the integration of Blockchain and IoT and it is not about the combined usage of IoT and AI (artificial intelligence) that is gaining traction
• Multiple technologies are de facto being increasingly combined such as AI, IoT and Blockchain or AI, IoT and robotics, hybrid cloud, fog computing and edge computing, next-generation security - you name it
13
© CGI Group Inc.
Overcoming Obstacles – what will it take?
14
Stability + scalability, security, speed = top barriers
Blockchain/DLT Regulations are under discussion
Industry Standards ~ progress being made
Challenge of bringing networks together
Trust and connectivity – data privacy
© CGI Group Inc.
Blockchain + IoT + AI: solve long-standing issues
15
Benefits for
Corporates
Benefits for Banks
• Facilitate more trade (25-40% revenue uplift)
• 80% cost reduction for auto-validation & reconciliation
• Provide more attractive working capital financing
• New projects by banks will create a network of networks
• Operational efficiencies (paper/error/risk reductions)
• Faster trade facilitation • Enhanced risk mitigation • Auto-reconciliation • Attracting working capital financing
© CGI Group Inc.
Key Takeaways
16
Though no one can confidently predict the magnitude of Blockchain/DLT and emerging tech growth, one thing is for certain: The Promise of Blockchain/DLT is Enticing, providing:
• Decentralized control • Trust • Transparency • New business models • Data resiliency
All of these and more will accelerate its adoption
© CGI Group Inc.
Question & answer
17
© CGI Group Inc.
Contact us to continue the conversation.
Nancy Amert Director, Trade Innovation Lab [email protected] +1 (704) 492-3697 cell
18
© CGI Group Inc.
Appendix
19
© CGI Group Inc.
CGI’s Digital Services: Helping clients transform
20
Strategy & Organizational
Change
Business & Process
Transformation
Technology Transformation
Digital Strategy & Roadmap
Technology Strategy & Architecture
Digital Organization
Collaborative Innovation
Human Centered Design / Customer
Experience
Digital Insights
Automation & AI
IoT & Intelligent Machines
IT Modernization Agile & DevOps
Hybrid IT & Cloud Cybersecurity
CGI Capabilities Digital Services
Bus
ines
s Sol
utio
ns
Pro
prie
tary
and
par
tner
tec
hnol
ogy-
base
d se
rvic
es
Con
sulti
ng S
ervi
ces
Asse
ssm
ent,
Stra
tegy
, an
d S
I
Out
sour
cing
M
anag
ed b
usin
ess
and
tech
nolo
gy s
ervi
ces
“Low Code” Business
Applications
© CGI Group Inc.
Our commitment to you We approach every engagement with one objective in mind—to help clients succeed.
21