Taking aim at back-office costs, BNP Paribas and accounting firm EY have implemented blockchain technology in their day-to-day operations. The companies have officially declared the blockchain trial complete. The trials were initiated to see if blockchain technology could assist in the bank’s global internal treasury operations.
BNP’s ALM treasury department implemented the internal testing of the blockchain within their system.
According to the two companies, the pilot has highlighted how an internal, private blockchain could be used to “improve operational efficiency by providing a more integrated cash management approach between businesses, allowing greater flexibility and a 24/7 capability”.
Another highlight BNP discovered from the pilot is the working hours could be extended up to 11 hours. This provides them insights on liquidity positions across its locations and can “boost the interoperability of the legacy systems” combining this blockchain with it’s current IT environment.
Due to the current allocation of data and trust among parties, Xavier Toudoire, BNP’s head of ALM Treasury IT strategy and architecture, feels the private blockchain technology makes the development of different businesses processes possible.
“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.
This is the newest test in the series of blockchain initiatives by various departments within BNP Paribas. Cash without Borders was launched in September by its bank’s Transaction Banking business.
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