Financial Executives Research Foundation (FERF), a financial research Organisation affiliated with the internationally acclaimed Financial Executives International, has just published a report in collaboration with Deloitte one of United States’ big four accounting and consulting firms on how Financial applications use blockchain technology.
The titled “Blockchain for Financial Leaders: Opportunity vs. Reality” studies how financial reporting, staffing, and other vital executive activities are being affected by the blockchain technology. During the research process conducted on a group of financial executives, it was discovered that about thirty percent of the participants would like to carry out blockchain-related activities in the nearest future even though the industry is still obscured.
The study also examined Bitcoin -the top cryptocurrency on the blockchain technology and its distributed ledger system. Concerning Bitcoin, sixty-four percent of the financial executives interviewed disclosed that even though there’s a significant change in the value of bitcoin or any negative report arising concerning the currency, they would still not be deterred them from exploring the opportunities of blockchain and other open ledger technologies in the financial sector.
Additionally, about the fundamental principles of accounting and auditing, the report predicted that it will have to be adapted or the entire process be reviewed to incorporate blockchain technology. This would involve accessing corporate staffing and training regimes and other associating administrative capacities. Only one-third of the participants in the survey believe that the financial industry is ready to address those strategies.
Another aspect the survey touched is whether financial organizations are ready to train or hire employees who have the right skill set to implement blockchain technology, sixty-seven percent said they don’t have the wherewithal, while only thirty-three said they are ready and willing.
In a statement by the Financial Executives International and Financial Executives Research Foundation president and CEO Andrej Suskavcevic, he said that “Blockchain is a powerful technology that presents numerous areas of opportunity in the financial sector,” Furthermore, he noted that the report provides a benchmark to assist financial professionals “understand where we are in terms of vetting, adapting and adopting blockchain. It also encourages them to begin thinking about how open ledger technology with its real-time verification and transactional capabilities can help them excel in their roles.”
In the concluding chapters of the report, it also considers how distributed ledger system (Blockchain) can help transform how companies records are stored and maintained and also how their assets are transferred between various parties. After the studies, the participants now hopes to expand their financial capabilities and reporting using the blockchain network.