Swiss insurance company Baloise has stopped a blockchain project and gave a surprise reason for the decision.
Basel-based Baloise pulled the plug on a project with the blockchain technology, according to «AWP» newswire (behind paywall). The company had planned to make the transfer of data on pension fund customers more easy and efficient.
The promise on paper had looked most attractive: a reduction of the time spent on a process to 30 minutes from a current 2 days, cutting costs to a mere 5 percent. Instead, spending exploded for each transaction, the company said.
Baloise therefore stopped the development – a decision it isn’t alone with. Other to have cancelled blockchain projects are UBS and Zuercher Kantonalbank, two of the Swiss top four banks. The technology either isn’t suitable for everything to be processed in financial services or still at too early a stage in its development and application.
