Former Google Exec Tries Blockchain Banking On For Size

You may not have heard of this engineer, but if you use an Android smartphone, you probably use his technology. Paul Taylor is a former Google engineer who developed the speech recognition software used in the smartphones. Now, he’s taking his talents to a new arena.

Reports on Wednesday (July 13) said Taylor has founded a company to provide financial institutions with a blockchain-based operating system. Dubbed Vault OS, the solution is geared towards banks that need to update their systems with secure technology, he said.

“Most of the banks are using systems that were written in the 80s and 90s, and they just are not ready for the security-conscious internet app age at all,” Taylor said in an interview with Reuters. “What the blockchain does is provide a very secure way of storing transactions.”

According to reports, Taylor, who specializes in artificial intelligence, machine learning and speech synthesis, first began developing the tool two years ago in London. Vault OS operates on the cloud and can be accessed on a pay-as-you-go basis.

At present, Taylor said about 10 banks are working with the Vault OS technology. One of them, though he didn’t specify which, is planning to begin using the system on a trial basis later this year.

He added that he expects the operating system to be fully functional within a year.

The financial services and FinTech communities have flocked to blockchain, positioning the technology with high expectations to overhaul the banking and FinServ spaces. Traditional banks have followed suit, some in fear that blockchain could disrupt and potentially harm their market dominance.

According to recent research from PwC, nearly a quarter of banks surveyed expect their operations to be negatively impacted by FinTech innovations like blockchain, a concern that researchers said leads to the need for banks to “leverage the FinTech ecosystem.”

PwC estimates that investment in financial technologies like blockchain will surpass $150 billion in the next three to five years. “Financial institutions and tech companies are stepping over one another for a chance to get into the game,” said PwC EMEA FinTech Leader Steve Davies in a statement.