IBM to Build Blockchain-based Credit Union Product Solutions with (CUSO) CULedger Collaboration
IBM has been enthusiastic in their exploration of the potential behind Blockchain. They have applied for dozens of patents in the field and are now exploring the use of Blockchain in the credit industry.
There will be a focus on using these blockchain networks to improve on already existing systems and procedures that need to be carried out in the process of granting and receiving credit.
Cashing in on Credit
Like all applications of Blockchain in the financial sector, it will be used to ensure more efficiency, speed and privacy by working with digital identity authentication, Know Your Customer compliance, lending and payments services.
Greater inclusion can also be acahiged with Blockchain to ensure that all 260 million credit union members around the world have access to such financial services while handing over $1.7 trillion worth of circulating assets.
Various credit unions can also carry out their transactions through the platform as well as make use of the CULedger-issued digital credential, “MyCUID” to Authenticate all transactions that take place and prevent fraud or theft.
“Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way. This decentralized approach using blockchain helps put the customer in control of their own identity. The work underway between CULedger and IBM will also lay the foundation for new kinds of services and collaboration among credit unions as we work together to scale and extend the network.” said Marie Wieck, general manager at IBM Blockchain.
As the new service launches this year, a new era of more efficient and secure credit facilities can begin with benefits for all involved.
CUSO has, for a while now, been actively working towards making use of Blockchain to improve on credit facilities.
In December 2018, they joined R3’s global blockchain ecosystem in order to reduce instances of fraud and improve operations for credit unions. This new partnership is the next wave of innovation for the financial industry, according to the management of IBM.
“We are creating a network through which all members can join and access new services and enabling credit unions to become even more competitive while addressing new market dynamics where members are demanding even more for their financial services provider,” said John Ainsworth, CEO and President, CULedger.