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Capgemini (Paris/New York) says that it is “accelerating,” its specialized blockchain practice with in its financial services business unit to help clients—including insurance carriers—improve operational efficiency, security, customer service and capture new market opportunities. The consulting, technology and outsourcing company announced that it has recruited a core team of leading blockchain technology specialists with plans to expand its global team to more than 100 professionals by year-end.
Blockchain is a “game-changer” which no financial services firm can afford to ignore, according to Anirban Bose, Global Head of Banking and Financial Services, Capgemini. “Blockchain is a good architecture to consider as the velocity of financial transaction processing increases, as it can reduce processing time from hours to minutes while providing unprecedented levels of transaction security,” Bose comments. “Central banks, financial institutions, and technology firms are beginning to embrace blockchain’s potential, and we are driving our expertise to be at the forefront of its adoption.”
In insurance, Blockchain can be leveraged for smart contracts to automate and transform claim verification and payouts processes, according to John Mullen, Head of Global Insurance, Capgemini.“Blockchain technology will further improve claims processing times and set in motion a series of innovations in pricing and controlling risk more precisely,” Mullen asserts. “Insurers will benefit not only from increases in automated claims processing but also from the vast security improvements of those claims, while creating automated payouts for insured events with better protection for trusted customer information.”
Capgemini reports that it already consults for several major banking institutions, regulators and insurers and is helping institutions assess and implement a range of blockchain-related solutions across retail banking, commercial banking, global markets and insurance. Capgemini says it will provide a range of consulting and technology services including: feasibility studies, business case assessments, operating model design, advisory services on systems architecture and full-scale systems integration.
Catalyst for Innovation
“Capgemini’s accelerated focus on blockchain technology represents a major step in the firm’s move towards developing solutions that are becoming a catalyst for change and innovation in the financial services industry,” comments Thierry Delaporte, CEO of Capgemini’s Financial Services Strategic Business Unit and member of the company’s Group Management Board. “Capgemini is collaborating with FinTechs to develop innovative blockchain solutions on Micro Payments, Syndicate Loans, Asset Management and Claims Handling which Capgemini will implement as a preferred systems integrator.”
Blockchain technology is rapidly gaining traction due to a rich ecosystem of startups, technology majors, and investments by leading financial institutions, according to Jimit Arora, Partner, Everest Group. “Blockchain use-cases in financial services have the potential to deliver significant transaction cost savings and at the same time increase transparency for regulatory reporting, minimize counterparty risk, and enable secure, efficient, and near real-time settlements,” he says. “As the technology matures and adoption increases, financial services firms will leverage multiple integrated hyperscale distributed ledgers backed by APIs to drive seamless connectivity and interoperability over public and private networks.”