Shinhan Bank Chooses A Blockchain For ‘Interest Rate Swap’ To Eliminate Risk Of Human Error
Shinhan Bank Chooses To Eliminate Risk Of Human Error By Supporting Ledger With Blockchain Technology
Blockchain technology offers an immutable and transparent ledger that is being adapted slowly around the world to meet the needs of different industries. South Korea has been recently making significant strides, especially in a new project hosted by the second-largest commercial bank in South Korea – Shinhan Bank. This bank has decided to use blockchain in their internal system in an effort to reduce the errors that could be caused by workers.
The bank has been working on integration involving both cryptocurrency and blockchain for the last year and a half. During this time, they have also provided a program to their staff that allows them to learn more information about blockchain and the potential use cases.
Based on a report from the Korea Times, the technology took on a first for the lender, instilling interest rate swap (IRS) transactions for the bank. With this new innovation, the financial records of customers will become automated, and the potential for mistake becomes significantly smaller. The implementation should make the bank’s entire system more efficient.
An unnamed official is quoted in the Korea Times, saying,
“Prior to the blockchain-based process, there had been no standardized rules governing keeping and managing financial records, a reason that market participants had to rely on their own records which often times led to errors despite the cross-checking process requirement. The new system helps remove such human errors and helps improve work efficiency through clearer, task-related communications rather than wasting time on correcting mistakes.”
Shinhan Bank made some waves in the industry last year in November when they said that they were attempting to create crypto wallets to offer their consumers. The innovative stride has become more commonplace since then, as partnerships and trials have watched blockchain technology become major parts of the growth in their own protocols.