Hey Asad

Thanks for your response. You raise real points about the ability of banks to innovate and solve problems.

First, I should start by saying that during my 20 years in Investment Banking i’ve come across some tremendous technology talent and know how. What has been a hindrance in the past has been divisional silos and a reward system that hasn’t really encouraged collaboration within these fiefdoms.

The onslaught of regulatory rules that require one voice within the organisation to be published out has not solved the silo problem entirely but has fostered cross divisional understanding of the spaghetti junction that is legacy IT.

So to answer your question, nothing has stopped banks doing DLT or Blockchain or similar joined up network centric tech before except the ‘WIIFM…what’s in it for me’ issue both in terms of pay/bonus and career progression…i.e. those doing cross divisional projects have always struggled for a sugar daddy/sugar mummy sponsor when it comes to showtime {bonus/promotion day} v’s ‘the all hail the king trader’ approach that a divisional head of IT may have adopted in the past.

Further, in terms of data, the data is the data. Whatever the quality, be it 60% confidence,80% confidence or 100%, the processes being carried out within the example laid out would still benefit from the smart contract style automation as the same quality data is being used in the manual process in any case.

So, the concept of DLT whilst not new or revolutionary from an external perspective would allow unique form of social, behavioural and technical change to take root in Investment Banks by involving all divisions contributing on a equal footing to the development and deployment of their nodes. This alone, would be a major step in bringing true tech back to IB.

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