Blockchain technology is moving from hype to reality and real life use cases are set to become much more common, PwC said in a new report.

The report “Redrawing the lines: FinTech’s growing influence on Financial Services”, draws on a survey of over 1,300 respondents globally. It says that financial institutions are putting disruption at the heart of their strategy and adopting newer technologies such as Artificial Intelligence (AI) or blockchain or changing the cultural environment to foster innovation.

According to survey results:

• 55% of respondents planning to adopt it as part of a production system or process by 2018, and 77% by 2020
   
• 50% of large fintech companies and 19% of large financial institutions identified blockchain technology as the most relevant to invest in within the next 12 months
   
• Payment companies are also heavily invested in blockchain technology, with 90% planning to adopt it as part of an in production system by 2020.
   
• The most likely business use cases of blockchain, as seen by 55% of respondents, is in Payments Infrastructure, followed by Fund Transfer Infrastructure (50%), and Digital Identity Management (46%).
   
• Funding in blockchain companies increased 79% year-on-year in 2016 to $450million globally
   
• Almost a quarter (24%) of global financial institutions say they are now ‘extremely’ or ‘very’ familiar with blockchain technology

PwC also pointed out that opinions around use cases for blockchain vary by country, often driven by the level of development in the technology in each geography. Respondents from the United States cite funds transfer infrastructure as the most likely business use case, probably explained by the maturity of blockchain investment already undertaken there, it said.

"The financial services industry has now fully embraced FinTech to help drive change and innovation.  Activity ranges from partnering with FinTechs startups, financing in-house incubators, and deploying new solutions, to testing use cases in areas like blockchain. Sustained focus on innovation is much needed and can only be a good thing for firms and their customers”, Commenting, Steve Davies, EMEA FinTech leader at PwC, said.

“There are few overnight successes and, unsurprisingly, as much perspiration as inspiration. There is a tension between the time needed for new ideas to mature and the expectations of firms seeking to collaborate with Fintech startups. Managing expectations around returns is important, particularly for firms facing significant cost pressures. Embracing Fintech is as much about different ways of working and problem solving as it is about deploying new technology.”