Frankfurt-listed digital services corporation Software AG has launched its digital business platform, with capabilities that enable financial institutions (FIs) to operationalise blockchain by gaining greater integration of, visibility into, and action upon public/private applications.
For Southeast Asia, this comes as a time as global financial services organisations are investigating the benefits of using blockchain – a decentralised and encrypted digital ledger – but few are exploring and developing the idea use case.
DBS, which reported total assets of $319 billion as of September 2015, has entered into a blockchain partnership with Standard Chartered and is exploring the use of a distributed ledger in trade financing.
The formation of the ASEAN Economic Community (AEC) and its associated trade liberalisation has raised concerns of transnational crime, a relevant concern given growing revelation of the extent of Malaysia’s 1MDB scandal.
With the blockchain predicted to reduce banks’ infrastructure costs by $15 billion – $20 billion per annum by 2022, according to a White & Case report, it could potentially be the game changer for the financial industry.
To fully leverage the opportunities offered by Blockchain, the industry must employ the right technology that can maximize the benefits without disrupting existing business processes.
Once an organisation has decided on the blockchain application that suits its business, the next step is to move it out of the incubator and tightly incorporate it within its enterprise applications.
Nigel Farmer, industry director for capital markets at Software AG, noted: “That is where the fun starts; making blockchain applications work in the real world is as much of a challenge as building the blockchain application itself.”
Organisations implementing blockchain do not want to add additional IT “spaghetti” on top of their existing technology infrastructure. They must be able to rapidly and seamlessly use blockchain to gain the advantages of the technology immediately without having to run complex, costly and lengthy re-architecting programs.
Interoperability of blockchain within an enterprise requires an intelligent blockchain access layer. The new Software AG Digital Business Platform provides a number of solutions that operationally the blockchain, starting with a blockchain access layer that integrates blockchain with legacy technology for interoperability.
Farmer concluded: “Many organisations developing prototypes are focused fully on the blockchain use case, and haven’t begun to think about what it means to put it into production. Software AG’s Digital Business Platform not only provides the necessary infrastructure, but enables them to operationalize this disruptive technology rapidly without disrupting the business and existing IT infrastructure.”