Blockchain and cryptocurrency are the most emerging technologies in the world. Over the period of time they have managed to create a positive impact in the lives of investors and organizations. Majority of institutions now intend to adopt the leading technologies to offer seamless, low cost-effective, and high-security services to their customers.
Blockchain is one of the largest technologies, significantly developing throughout the world. Several organizations are now adopting them in various sectors and experimenting with it. Among various sectors, one important sector that will be making the most use of blockchain is the finance and banking sector. Yes! This technology will greatly benefit the finance and banking sector in the days to come. The reason for this is due to its features it offers such as secure network, verification speed at low cost and important one the ability to store transactions and at the same time offering a higher transaction level.
Not all banks are moving towards implementing blockchain technology; few banks have already deployed the blockchain platform and other still in the initial stage. The bank that is currently making blockchain development is the Shinhan Bank. This bank wants to bring some sort of changes in their services and has pushed forward to experiment with the blockchain technology. Shinhan Bank is one of the oldest banks of South Korea. Now, this financial institution has launched a blockchain based loan platform; the aim of the blockchain platform is to enhance the loan process. The news was reported by Yonhap South Korean news agency on May 27th, 2019.
The Shinhan Bank mentions that the blockchain powered platform will be used to resolve barriers of general people, those applying for loans via online and will use the technology towards its scraping operations. Financial organization refers scraping to – a process where banks verify a huge amount of related financial information of loan applicants.
Loan applicant data such as employment certificate, degree certificate, belonging to the authorized organization and others are easy to upload, but they need to be processed through hands, might take three working days without using blockchain platform and time-consuming. The South Korean bank says that its new blockchain based system will enable them to do ‘real-time’ verifications of documents and will significantly boost the loan sanction process.
Reports also state it’s the country’s first initiative and the first one to be launched in South Korea.
The blockchain powered platform will be used only in the verification and confirmation processes across the network of associated institutions and banks. The blockchain system will allow the interested parties to register and work in the network with a one-time encrypted password, which allows for easy and quick access of the data that is required to approve loans.
The blockchain platform will eventually help the bank to speed the loan procedures, reduces cost, improves the processing time, and enables applicants to apply for loans online.
Technology is getting advanced day by day, more innovation is taking place, and people are getting attracted towards making everything online, and they do want to waste their time waiting at bank for small work. Remote services are attracting new customers, and banks need to implement innovative technologies to remain in the world.
The Shinhan Bank wants to offer remote services to its customers, and the bank will further continue to design technologies with remote access and also products to boosts its accessibility.