Blockchain guru and former UBS executive Oliver Bussmann tells finews.com how banks can tackle the challenges offered by new technology, and why Swiss financial institutions could be left behind in the technology race.

Oliver Bussmann is one of the rising stars in the Swiss fintech scene; his role as head of innovation at UBS saw him shepherd current CEO Sergio Ermotti through California’s Silicon Valley. The «Financial Times» even praised him as the «fintech apostle».

After his abrupt departure from UBS in 2016, the imposingly built German kept a lower profile, but remained active. He started his own consultancy firm and, in his role as president of the Crypto Valley Association in Zug, has helped over the past year to try and build a Swiss Blockchain hub; also involved in the project – alongside startups and the canton – is his former employer UBS.

Payment System Pioneer

This could be one reason why the digitization expert maintains close links with the banking world and finds himself at the center of Blockchain developments. This year he expects the financial sector to launch a number of new technology projects.

The banking sector is under enormous pressure, he told finews.com. The efforts of the banks as far as the Blockchain technology are concerned are moving in two directions: firstly the digital transformation where existing business is adapting to the new technologies. The biggest advances however have been achieved in transforming payment systems, where Spanish banks are already employing new systems, according to Bussmann.

American Crypto Star

«This year we could see the first offers being made in the trade finance sector,» he said. Also, there is the trade financing platform «Batavia» where UBS is also a project participant. Then there is the banking giant HSBC which, according to the «Financial Times» (behind paywall) is involved in creating the first trade financing Blockchain for commodities trader Cargill.

The migration of stock exchange trading functions onto Blockchain isn't likely to happen before 2020. Here the pioneer is the Australian ASX exchange which is working with American crypto star Blythe Masters.  Swiss stock exchange operator SIX is also working with his company Digital Asset.

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