BLOCKCHAIN IN BANKING: DISRUPTIVE NEW TECHNOLOGY OR MUCH ADO ABOUT NOTHING

The invasion of high technologies in the financial sector has led to fundamental changes in the banking landscape. Blockchain is one of these emerging technologies that have high disruptive potential and is expected to cause radical transformations in the banking business. The innate conservatism characteristic of traditional banking today faces a serious test. Blockchain combined with automation of key processes through smart contracts can significantly increase the operational efficiency of banking and eliminate unnecessary chains of intermediaries in some transactions. The on-going buzz about blockchain technology raises questions as to how realistic are the predictions for a boom in its application, when tangible results can be expected, or will it end up being "much ado about nothing"? Based on selected indicators of the degree ofblockchain penetration in the major banking segments, this paper examines the expected results from the implementation of the new technology and its impact on key processes in the modern banking business. Finally, the problems and challenges of the blockchain application in banking are outlined.