BNP Paribas and “Big Four” accounting firm EY are taking aim at back-office costs with their latest blockchain work.
Announced today, the two companies completed a trial aimed at investigating whether private blockchain technology could improve the bank’s global internal treasury operations. The blockchain was put through internal testing by BNP’s ALM Treasury department earlier this summer.
According to a statement, the successful trial proved the potential of the private blockchain to drive operational efficiency by providing a more “integrated cash management approach” and allowing “greater flexibility and a 24/7 capability.”
The pilot demonstration reportedly also helped BNP Paribas boost the interoperability of its legacy systems by combining the private blockchain with the existing IT environment.
Xavier Toudoire, the bank’s head of ALM Treasury IT strategy and architecture, said private blockchain technology allows the development of different business and operational processes not previously possible due to the distribution of data and trust among parties.
“Although it is still too early to determine how the technology will evolve and whether it is suitable for large-scale deployment, our pilot has demonstrated the clear strengths of private blockchain and its potential as one of the most effective ways to improve the existing internal processes between different businesses on an international level,” he said in the statement.
Overall, the pilot is the latest in a series of blockchain initiatives by various entities within BNP Paribas, including Cash without Borders launched by the bank’s Transaction Banking business.
BNP Paribas image via Shutterstock