PwC study: Blockchain not a priority for German financial sector

Every second German financial manager considers the blockchain technology to be relevant for the future. However, only very few invest. This is the result of a recent study by the consulting firm PwC. The results reveal a clear gap: While more and more financial experts are taking distributed ledger technologies seriously, in Germany comprehensive investments are a long way off. This could have bitter consequences for the German financial sector, as global competitors are investing purposefully in DLTs.

The blockchain continues to dominate the global headlines this year as well. The much-discussed promise: drastic cost savings and groundbreaking transformation potential – especially for the banking and financial sector.

Bankers in particular are confident in the Bitcoin code

The question of mere hype or serious hope for the financial sector tested by onlinebetrug was posed by the consulting firm PwC in its current study on the role of the Bitcoin code blockchain for the financial sector.

To this end, around 300 executives of German banks, insurance companies and asset managers were asked about their expectations and perceptions of blockchain technology, its current adaptation and their assessments of crypto currencies. The results reveal a seemingly contradictory picture: While the blockchain is becoming more and more visible to business leaders, especially in comparison to the previous year, there is currently still a gap in the actual amount of attention paid.

For example, more than half of the managers surveyed rate the blockchain as “relevant to the business”. Furthermore, almost one third of the financial managers estimate that the blockchain will have a strong influence on the financial business in the next ten years. Another two thirds believe that it will influence their business model at least “to a medium extent” in the next ten years.

Almost half of them expect Bitcoin code to be a means of increasing profits in the long term

Financial sector without hurry regarding the crypto currencies a risk and Bitcoin code a scam. Despite the high level of popularity, the industry does not seem to be preparing for any upcoming change of course. Practical conclusions linger on the long bank, there seems to be no need for Bitcoin code action at present.

The study shows that currently only a fraction of the financial sector invests, and that the business is even more rarely focused on technology. Only just under two percent of the banks, insurers and asset managers surveyed stated that they invest budgets of over 100,000 euros in the research and development of DLTs. More than half of them do not invest a cent.

A similar picture is confirmed by a look at the corporate strategy. For almost two thirds of the respondents, the establishment of blockchain solutions is not part of the company’s orientation. Only three percent of the companies state that they are already integrating blockchain solutions into their daily business or planning to do so promptly.

Crypto currencies also experience restraint. 67 percent of the financial service providers surveyed stated that they would “by no means” want to get involved in the field of digital payment alternatives over the next two years. A total of 83 percent even estimate that neither crypto currencies nor ICOs will have a significant impact on their business areas in the next two years. In the past year, these had repeatedly been taken into consideration for their business portfolios, especially by major global banks.

Restraint – Will German companies be left behind?
Thus, this week’s results once again confirm a trend of restraint on the part of German companies. As early as February, a survey conducted by the industry association Bitkom showed that only a fraction of companies were advancing in the adaptation of the technology. Almost half of them had described themselves as laggards in this field.

However, while more and more banks and financial institutions around the world are keeping their eyes firmly on the blockchain and its potential for future market upheaval and pumping large sums into its development, a groundbreaking question arises. Will German companies be left behind by international competition?

Dr. Thomas Schönfeld, head of PwC’s department for blockchain research, is sure of this. Although an initial wait-and-see attitude is understandable, the blockchain will “change the financial industry”.