Suning Bank Creates Shared Blockchain Ledger to Prevent Credit Fraud
As of June 14th, Suning Bank is in the process of testing out a blockchain system that would allow the participating financial institutions to access information about users with poor credit. A local news source says that this system will help the partnered banks to reduce the amount of credit fraud that happens to theirs and other customers.
Each of the banks that elect to participate in this database will have their own node on the blockchain. The nodes will have access to the original blacklist and will have the capability to add their own data about their customers, which helps to keep the other institutions involved. This decision to combine efforts across multiple banking platforms is one of the latest ways that the financial industry is using blockchain technology for their credit systems.
Suning Bank was established in 2017 by parent company Suning, making it one of the first commercial banks with online-to-offline capability in China. Its original purpose was for private companies to be able to loan funds to smaller and medium-sized businesses. In September, the bank had joined a consortium with CITIC and Minsheng, which takes advantage of the blockchain system to create letters of credit.