Shinhan Bank in South Korea to Leverage Blockchain to Pick Up the Loan Issuance Process
More and more companies are using the blockchain technology in order to make their processes more efficient. The Shinhan Bank, one of the oldest South Korean financial institutions, is no exception to this trend. Yonhap, a local news agency, originally reported on this story.
The bank is set to use the blockchain technology in order to speed up the issuance process of loans products. The blockchain will be used in the verification of the items that are required to check the credit of the clients like certification and qualification documents.
With the help of this technology, the customers will have an easier life as they will be able to submit all the required documents directly instead of using the old ways like manual verification, which is deemed as too time-consuming.
The company is expecting to cut both time and costs by using the new technology in its verification system. The bank has already started to use the technology on one of its loan products called Shinhan Doctors. With the use of the product, the confirmation time for the transactions was reduced from three days to almost instantaneous.
All the data will be available at all times to the parties involved in the transaction, too, which will make their lives considerably easier. They will be able to use an encrypted password in order to access the service.
According to an official from the bank, the new blockchain system will be very important for the bank’s growth as it will boost the number of loan products which are processed, mostly because it will be really fast.
About Shinhan Bank
The Shinhan Bank was created over a hundred years ago. The company was first founded in 1897. Initially, it was known as Hanseong Bank, but it was rebranded in 1982.
At the moment, the bank has been exploring some new blockchain solutions since last year. Initially, the company used some Ripple tech in order to make cross-border transfers.
Despite only starting to invest in blockchain directly last year, the bank was known for investing in some blockchain startups before. Back in 2015, it was responsible for investing in Streami, a blockchain remittance startup.