Blockchain presents a double-edge sword for banks. On the one hand, it could potentially save banks billions in cash by dramatically reducing processing costs. Banks are salivating at the opportunity to reduce transaction costs and the amount of paper that they process. Implementing blockchain would make banks increasingly profitable and valuable. Santander, a bank based in Spain, put the potential savings of blockchain at $20 billion a year. Alternatively, the opportunity to start a bank with lower costs has attracted many new fintech startups to the market. Banks are also hedging their bets by directly investing in fintech startups. According to KPMG , in 2016, venture capital funding to global fintech companies reached a record $13.6 billion while overall investment in fintech companies totaled $24.7 billion.
Banking costs for consumers will decrease and there will be reduction in fraud.