One in three finance executives expect use of smart contracting to bring many benefits

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Only 20% are already familiar with tokenization

Amsterdam, 6 December 2022 – 30% of financial officers expect that the business use of smart contracting can bring many benefits to their organisation. This is according to research by Visma | Onguard where more than 580 financial managers and entrepreneurs were surveyed. Smart contracts are automatic digital agreements that are drawn up without the intervention of a third party. Remarkably, the conversation about the use of smart contracting is not that often entered into yet: only 18% indicated that it has already been discussed in their organisation.

Little knowledge about latest innovations

The fact that this innovation is not yet widely embraced may be because there is still little knowledge about it. Only a quarter of finance managers (26%) say they have a good understanding of what smart contracting entails and how it works. For another Web3 innovation, tokenization, there is even less knowledge among financial officers. Tokenization is a technology in which sensitive data, such as credit card information, is bundled and replaced with a unique combination of letters and/or numbers. By using tokens, payment orders can be easily and securely executed. On tokenization, 20% say they already have a good idea about how it works and its capabilities. The benefits of this technology for organisations is seen by 24%.

It therefore does not suit every company to take the pioneering role when it comes to innovations. Only 19% of finance executives say that working with Web3 innovations fits well with their corporate identity. This includes not only smart contracting and tokenization, but also the better-known NFTs and cryptocurrencies.

Adriaan Kom, Managing Director at Visma | Onguard: “Regarding cryptocurrencies and NFTs, we have now seen enough examples of why they may or may not work for different organisations. Technologies like smart contracting and tokenization are still a bit more in their infancy in business terms. But for all these technologies, it is advisable to explore whether they could be useful to deploy within your business. In any case, many industries, such as financial services, logistics, real estate and healthcare, can benefit from the use of smart contracts. So it is advisable for finance professionals to explore the options and determine, based on their own analyses, whether these new technologies will be a helpful addition to your organisation.”

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