Use Cases and Monetization Challenges of Blockchain Applications in Wealth Management
Martin Hartenstein, Winifred Gutmannsbauer, Dirk Klee, Andreas Przewloka, Stefan Arn, Andreas Kubli, Veronica Lange, Peter Stephens · 2018
A WEF report stated that blockchain will fundamentally alter the way financial institutions do business; with change coming from new processes and architecture, rather than Bitcoin or FinTech innovations. To assess the relevancy of use cases from a financial services perspective, the two questions "where to play?" and "how to win?" help focus on potential activity areas. In addition, news is being shared on how consortiums are being set up to commercially leverage distributed ledger technology (DLT). Trust, safety and interoperability are key aspects that will influence the adoption of DLT-enabled services, from the perspective of a wealth management (WM) client as well as that of a holistic WM provider. The two key monetization challenges imminent are the observation from the evolution of other digital technology offerings and the network effect to make DLT a success for all parties involved.