SAI Blockchain. Dirk Hermans, KBC 24/10/2017. Company

Transcription

1 SAI Blockchain Dirk Hermans, KBC 24/10/2017 Company

2 What it is not KBC 2

3 Cryptocurrencies And more!!

4 Blockchain & financial institutions : the forgotten words LIABILITY GOVERNANCE REGULATIONS

5 Ijsberg met bitcoin on top en de rest eronder We are NOT looking at Bitcoin.

6 What it is KBC 6

7 Trust

8 Trust Notaris Revisor Aandelen trx

9 Trust Becomes distributed

10 Blockchain digites trust

11 Ik ga op vakantie en neem mee KBC 11

12 Basic Principle The Hash Input Variable size Mathematical process Output Fixed size Welkom bij SAI. 55e0f5da18d a2a2967dc617 1fc60f91cf964b5fa38cd8d0c21d5f1e8 Welkom bij SAI! ff48d4a75ff36fd457a24dc60bea7f73f e9ec97b061e2ce9bbc1040e5a36773e

13 Building the chain Block 5 accept (automated) Pay Block 4 fix Previous Hash + Hash blockchain. SHA : f0d1f7011a0csgtt457bbs,e58e3b4097f6b97 Public key sender car dealer 2 Smart contract/application body Block 3 accept Block2 Proposal Block 1 claim Previous hash +Hash blockchain. SHA : f0d1f7011a0csgtt457bbs,e58e3b4097f6b97 Public key sender car dealer 1 Smart contract/application body Hash blockchain. f0d1f7011a0c5ce58e3b4097f6b977346b61110d Public key sender Smart contract/application body

14 Key benefits KBC 14

15 Blockchain Taxonomy Stakeholders Permissions Granularity of trust Public Permissionless Blockchain BITCOIN FINANCIAL INSTITUTIONS Consortium Permissioned on Permissionless Distributed ledger Private Permissioned

16 Non-Financial Examples Diamond tracking Land registry Smart energy KBC 16

17 What it is in Finance KBC 17

18 Potential of Blockchain in the Financial world Important thing is that Blockchain itself does not depend on Bitcoin and thus can be used outside of Bitcoin ecosystem. This fact has started Blockchain evolution towards Distributed Ledgers optimized for established financial world. Enhanced blockchain solutions Distributed ledgers are being intensively explored by number of financial and technological companies: From the corporate (bank) point of view, Distributed Ledger has a potential: to enable market adoption of DL based business platforms to bring better products (e.g. near instant cross border payments or simplified trade finance) to lower implementation and recurrent costs 18

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21 Banking/insurance is all about People, trust and data. Blockchain has the potential to replace that. JOHAN THIJS, CEO KBC Group 22

22 Blockchain a new paradigm how do we prepare? Understand Disruption Understand Potential opportunities Understand the impact on infrastructure, products, services and PROCESSES 23

23 Collaboration & consortia 24

24 Some Experiments / Projects

25 KBC Decision model ( David Birch) Source : Gartner 26

26 KBC Use cases KBC Securities Crowdfunding Trade Finance (CZ) Digital trade chain KYC KBC New York Financial Markets KBC BE Credits Car loan on Blockchain Trade Finance Digital trade chain KBC BE Retail KYC KBC BE Insurance Document authentication KBC Payments (BE+CZ) Simulated CB cryptocurrency payment between KBC and CSOB 27

27 KBC Insurance Document Authentication

28 Trust Chain - your digital documents on the blockchain Why? How do we, as insurer, secure trust of our customers in our digital documents, now and in the future?

29 Trust Chain - your digital documents on the blockchain Authentic What Valid 2-sided

30 Trust Chain - your digital documents on the blockchain VALID FROM 26 April 2017 VALID FROM VALID FROM Proof of Authenticity Proof of Existence Proof of Validity VALID FROM VALID FROM VALID FROM

31 Trust Chain - your digital documents on the blockchain /vinci says builder isn t revising acccounts cfo isn t fired French constructor Vinci, active in +100 countries Not hacked but impersonated Fake press release on fake website Bloomberg picks up first Shares drop with18% How to undo?

32 Movie 1

33 KBC Bank credits Car loans

34 All the feels when buying a new car Buying a car is fun but we found a way to kill it

35 As Is: the current flow garage invoice Receives payment customer invoice Pay for car branch Credit = approved Check invoice Registers invoice Scans invoice Pay credit HQ Extra check invoice

36 To Be: a new approach 1. Don t digitize the current proces, rethink 2. Create the customer experience end to end 3. Stakeholders sign their documents, no TTP 4. Include the payment 5. Respect privacy, create a GDPR compliant solution 6. Seek further collaboration

37 To Be: holistic approach with a blockchain garage invoice Transparency on status Receives payment customer invoice Pay for car KBC Credit = approved Pay from credit / account Blockchain Register relevant data Register hash & some details Data of invoice/credit

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42 KBC Trade Finance Digital Trade Chain

43 Focus on trade flows within Europe Current situation in open account trade Advantageous to importer in terms of cash flow and cost Risky for exporter Based on tremendous amount of paperwork (invoices, shipping docs., ) Almost 80% of European import & export happens on open account terms 1 TRUST FINANCING 1) Oliver Wyman analysis 44

44 One single platform To initiate transactions on paperless and secure basis Track transactions at each stage of the lifecycle, from order to settlement Providing easy access to banking services currently not accessible or too expensive 45

45 movie2 46

46 Why blockchain? Blockchain ensures that all parties (buyer, seller, buyer & seller banks) can rely on trusted, transparent, traceable, immutable transaction (status) data Blockchain offers the required level of security and trust as all authorized parties can see what is happening on the permissioned distributed ledger 47

47 A transparent platform for SME s & stakeholders Credit Insurer Transporter/Forwarder Certificate issuance Credit Insurer Credit dpt Credit dpt Payments Payments Commercial finance Insurance Buyer s Bank Seller s bank Commercial finance Insurance Buyer Seller

48 Moving forward KBC 49

49 Projected timeline KBC 50

50 Challenges Collaboration between banks? Integration with legacy systems? Possibilities of this nascent technology? Extra security or disruptive tech? No clear regulations (yet) KBC Why choose blockchain for FinTech? 51

51 Example - Evolution in time Payments Industry Use Case KBC use Case Utility Settlement Coin (UBS, Santander,DB BNYM) Time horizon Fiat backed cryptocurrency Tokenization Quantoz : Digital cash on delivery) Administrative / operations processes Combined complexity Ripple Swift POC DLT Transparancy Cryptoccy, ICO Process complexity Number of intermediaries Number of participants Risk Back-end integration Regulation Industry standards (associations) 52

52 The new dimension Time horizon New reality : Cross Silo models 5-10 yr Combined complexity 2-5 yr 0-2 yr Identity Contracting/ services mobility energy IoT Process complexity Number of intermediaries Number of participants Risk Back-end integration Regulation Industry standards (associantions) KBC 53

53 Leasons learned Cross your boundaries Blockchain is about collaboration It s the Eco system, not the ego system Build a roadmap to success A profitable business case might take some time Start with a Minimal Viable Product Technology providers will support you in technology Technology will be mature enough in the end Business & legal are more important drivers KBC 54

54 Questions?