Willayna Banner, head of Web3 and blockchain at Microsoft, spoke at Sibos 2022 about how emerging technologies will contribute to the decentralisation of global trade finance.
Banner joined the pandel alongside CITI’s Ope Olomo, Deutsche Bank’s Marion Laboure, HSBC’s Vinay Mendonca and Standard Chartered’s Kai Fehr, who considered the impact of permissionless access and new regulations, among other topics related to the near future of decentralised finance.
According to Banner, Web3 – a concept that builds on the World Wide Web with decentralisation, blockchain technologies and token-based economics – and blockchain technologies within the financial services industry will include artificial intelligence-driven services, edge computing infrastructure and a focus on privacy.
The panel discussed both the positive and negative impacts of decentralising finance, such as organisations having better financial access, the cost and challenge of digital onboarding and the concept of tokenisation. They also highlighted the importance of standardisation and identity verification.
Banner pointed out that solutions such as Microsoft Entra, a product family that encompasses all of the firm’s identity and accessibility capabilities, are aiming to tackle the security risks associated with Web3 and blockchain technologies.
The panel concluded that the industry is likely to see a hybrid of centralised and decentralised global trade finance going forward and that banks will need to partner with financial technology companies to prepare for the inevitable shift.