South Korea’s Oldest Bank Unveils Lending Platform on Blockchain

Shinhan Bank, the oldest commercial bank in South Korea, has launched a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based lending platform to ease the process of loans.

According to a May 27 report by local news agency Yonhap, the bank has introduced the decade-old technology to verify applicants’ necessary documents as a part of the KYC process, reducing the need for a face-face interaction.

With this step, the bank intends to boost cost and timeline efficiencies in the process of granting loans. The report also detailed that the bank has included all its affiliated institutions and banks within the blockchain network, and the data can be accessed by the affiliated parties using an encrypted one-time password.

According to the bank, it is the first such commercial development using blockchain technology in the country.

A spokesperson from Shinhan Bank revealed that the primary focus of the bank while introducing the new technology is to boost remote access to its services and it will continue to implement other such customer-faced products as well.

Banks on blockchain

Established in 1897 as Hanseong Bank and rebranded in 1982, Shinhan Bank is also the second largest commercial bank in the country. The bank is one of the early players to bet on blockchain and implemented the technology last year to its internal processes to minimize human errors. Few media reports also surfaced that the bank introduced blockchain-based rate swap transactions.

Meanwhile, other major banks around the world are also testing the technology to make their current processes efficient. Earlier this month, Finance Magnates reported that the Monetary Authority of Singapore (MAS) and the Bank of Canada (BoC) jointly tested cross-border Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term using a proprietary digital currency.

In addition, a consortium of banks is also planning to invest as much as $50 million to build a settlement network based on blockchain.