Page 18 - June 2018 Disruption Report Flip Book

BLOCKCHAIN ADOPTION
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cases,” said Nigel Dobson, General Manager Wholesale Digital, Digital Banking at ANZ. “This proof of concept demonstrates how we can collaborate with our partners to develop a digital solution for customers, which also has the potential for industry-wide adoption.”
“This is about removing the cost of fraud, error and operational risk that will continue as long as bank guarantees remain paper-based and manually issued,” said Westpac’s Andrew McDonald. “Next steps involve encouraging all industry players to adopt this technology so we can better protect and save money for our customers. Beyond that there is no reason why this couldn’t
be applied across other industries.” (Press Release, Westpac Banking Corporation, 07/10/17)
Cross-border transactions
Banks need a way to manage nostro/vostro accounts, which are used to facilitate and simplify trade and foreign exchange transactions through reconciliation. Nostro (ours) refers to an account a domestic bank holds in a foreign bank in the foreign country’s currency. Vostro (yours) is how the foreign bank refers to that account. Nostro/vostro accounts can be stored on a blockchain to improve transparency and efficiency through automated reconciliation of accounts. The benefits include:
• The ability to manage transactions across all of a bank’s vostro/nostro accounts through a single interface
• Greater visibility of transaction status, current balance, and tracking over time
• Consistent, timely, and accurate picture across all nostro/vostro accounts Cross-border pilot/service: Banco Stantander:
Following a one-year trial, Spanish bank Banco Santander has launched “Santander One Pay FX,” a new international transfer service using blockchain-based technology, to retail customers in Spain, the UK, Brazil
and Poland. One Pay FX allows Stantander’s retail customers to make international transfers that are completed either on the same or next day. The service provides customers a transparency regarding to the net transfer to recipient in their domestic currency.
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