Shinhan Bank, the oldest bank in Korea, has reportedly adopted blockchain technology for a new lending platform designed to facilitate real-time settlements.
The development which was confirmed by the local news agency, Yonhap shows that Shinhan Bank expects the adoption of blockchain to lower the cost of issuing loans as well as the timeframe for such transactions.
In order to operate efficiently, the new lending system uses blockchain technology to verify and confirm user data obtained from banks and other institutions in Shinhan Bank’s network.
The institutions and users can access the system using a one-time password, allowing near-instant access to the information needed to approve loan applications. Being able to apply for loans without face-to-face interaction is a feature that customers can hope to enjoy with the new platform.
Speaking about the new blockchain-enabled lending system which is reportedly the first of its kind in Korea, a Shinhan Bank official noted that it is part of the bank’s ongoing effort to roll out remote services for its client base.
He further highlighted that the bank would pursue other innovative efforts that can help improve product accessibility to customers who live in remote places. It followed up on an earlier move in December where the bank reportedly integrated blockchain into its internal data storage processes to reduce human error and provide more efficient services to customers.
In another report about a bank adopting blockchain technology, we reported in February that Japanese Bank, Mizuho introduced a new cryptocurrency called JCoin to help users settle payments faster.
Mizuho’s adoption happened less than a week after U.S banking mogul, JP Morgan, announced it was going to launch a new cryptocurrency that would serve as a unit of settlement for interbank transactions.