South Korea’s oldest commercial bank, Shinhan Bank, has launched a blockchain-based lending platform for easing up the process of facilitating loans.
The bank – according to the news agency, Yonhap’s May 27 report – has introduced blockchain technology in its lending program for the purposes of verifying the necessary documents of its applicants, as part of the KYC process, thereby reducing the need for face-to-face interaction.
Through blockchain technology, the cost and timeline efficiencies in the process of granting loans will be significantly boosted. The bank, according to the report, has also included all affiliated institutions and banks within the blockchain network where the data can be accessed by affiliated parties using a one-time encrypted password.
This is the first commercial entity using blockchain technology in the country, according to Shinhan Bank.
According to a spokesperson from Shinhan Bank, the primary focus of the bank introducing blockchain technology is to boost remote access to its services, adding that it will continue to implement other such customer-faced products as well.
Shinhan Bank was established as Hanseong Bank in 1897 and rebranded in 1982. Being the second largest commercial bank in the country, the bank is one of the early players to bet on blockchain technology. It implemented the technology last year to its internal processes to minimize human errors. According to a few surfacing media reports, the bank also introduced blockchain-based rate swap transactions.
This article was originally sourced from the Finance Magnates.