Siemens has announced that it is using the blockchain system of JPMorgan, called Onyx to power its internal payments systems which will be expanded at a later point in time.
This follows the slow and steady digitization of all financial functions not only by banks but by all businesses that are involved in financial activity. The last couple of years has made everyone realize the ease and security of digitalization and the shift in the mindset of the users has also contributed to the banks and other financial services companies looking to push ahead with these plans. All of them need a strong, reliable, and robust platform to handle their financial systems and blockchains provide a very good option for the same. Scaling and sharing are other important aspects that need to be considered by the companies and blockchains that manage to tick all the boxes. JPMorgan, after being in denial for some time, also seems to have realized the importance and flexibility of blockchains for managing financial services and it has been pushing its customers to shift towards the same.
“If the business would stay the same as it is today, I would say we are fine regarding our treasury set-up. We can automate a bit and maybe we reduce costs and cash allocation,” Heiko Nix, head of cash management and payments at the German industrial firm, said. “This is not the reason why we are doing this. The reason is that we are seeing a huge change due to the emerging digital business models, because we will no longer be able to forecast cash, for example.”
Siemens is reported to be seeing a surge in transaction volumes on its systems as the digitization and pay-per-use systems begin to take over. A blockchain platform would also be helpful for it to share data with other units and companies which could then tap onto a common system/platform for all their needs. In the future, it is going to be difficult for any financial platform to exist separately within an ecosystem and data sharing is likely to be the way ahead, as far as the financial services industry is concerned. This will also go a long way in weeding out bad players from the system immediately which will be useful for the business entities and ultimately for the users as well.