A group of Italian banks is testing blockchain technology for interbank reconciliations. More lenders are expected to join, as this will allow for instantaneous settlement and provide data transparency and visibility.
With interest in blockchain growing rapidly, banks are recognising that the technology can overhaul their payments models and reduce global interbank settlement costs by saving time and cutting the risks involved with clearing trades.
Go deeper with GlobalData
At present, cross-border payments are processed through a chain of banks, and often these intermediaries represent a point of delay and cost.
In recent months, blockchain technology has attracted significant investment from many major banks. The firms believe it can enhance and speed up their operations by reducing the need for intermediaries and directly connecting financial institutions.
The Italian Banking Association (ABI) has successfully completed the initial phases of a blockchain project, marking the technology’s first use by banks in the country.
The Spunta Project, managed by the association’s research and innovation arm, ABI Lab, and carried out by a group of 18 Italian banks, aims to implement blockchain technology to interbank processes by March 2020, which will result in faster transactions, checks, and exchanges.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe project’s application is designed to implement distributed ledger technology (DLT) within the country’s interbank processes. The first phases of testing involved technical procedural verification and daily integration with participating banks. The performances obtained were encouraging, thus making it possible to continue to the pre-production phase.
While maintaining the confidentiality of the information, the new process will make bilateral channels available, through which counterparties can exchange information. With the use of the DLT platform and the implementation of Smart Contract, it will be possible to provide automatic feedback on bank transactions, thus simplifying and accelerating the settlement process.
