# kaal:claim:3409548-023

**Claim.** Legacy systems at private investment funds and banks are more expensive, more error prone, and slower than emerging blockchain technologies, a gap illustrated by the $1.7 trillion in processing fees banks charged in 2014.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- comparison of bank and fund legacy processing systems with blockchain

**Source quote.**

> Most legacy systems at private investment funds and banks are much more expensive than emerging blockchain technologies, are subject to human error, and take much more time. Banks charged $1.7 trillion in processing fees in 2014.

**From.** Kaal, *Financial Technology and Hedge Funds* (2019), III. Impact of Technology on the Hedge Fund Industry, page 21

**Cite as.** Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548

**Verify.** sha256 of source PDF `74227ab2656b06bfe4a29c942fc2ba26df9f476917e0a9f85ec038b8c3402c40` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Financial%20Technology%20and%20Hedge%20Funds.pdf

**Topics.** blockchain, economics, systemic-risk

**Keywords.** legacy-systems, blockchain, transaction-costs, banking

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