1‰ PwC Global FinTech Report The use cases are coming thick and fast but usually centre on So what? – An area worth exploring increasing efficiency by removing the need for reconciliation When faced with disruptive technologies, the most effective between parties, speeding up the settlement of trades or companies thrive by incorporating them into the way they do completely revamping existing processes, including: business. Distributed ledger technologies offer FS institutions a • Enhancing efficiency in loan origination and servicing; once-in-a-generation opportunity to transform the industry to their benefit, or not. • Improving clearing house functions used by banks; However, as seen in the survey responses, the knowledge of and • Facilitating access to securities. For example, a bond that likelihood to react to the developments in blockchain technology could automatically pay the coupons to bondholders, and any are relatively low. We believe that lack of understanding of the additional provisions could be executed when the conditions technology and its potential for disruption poses significant risks are met, without any need for human maintenance; to the existing profit pools and business models. Therefore, we recommend a pro-active approach to identify and respond to • The application of smart contracts in relation to the Internet the various threats and opportunities that this transformative of Things (IoT). Imagine a car insurance that is embedded technology presents. A number of start-ups in the field, such in the car itself and changes the premium paid based on as R3CEV, Digital Asset Holdings and Blockstream are actively the driving habits of the owner. The car contract could also working to create entirely new business models that would lead contact the nearest garages that have a contract with the to accelerated ‘Creative Destruction’ in the industry. The ability insurance company in the event of an accident or a request to collaborate on both the strategic and business levels with a for towing. All of this could happen with very limited human few key partners, in our view, could become a key competitive interaction. advantage in the coming years.