Shinhan bank is reportedly using blockchain technology to speed up the approval process for loan products. The Shinhan Bank is one of the oldest and largest banks in South Korea; it was founded in 1897. News has it that they intend to use a blockchain platform to verify the items of proof required for credit lending, such as qualification or certification documents according to a report on Monday
Customers usually had to submit necessary documents as mentioned above directly to the bank to undergo manual verification of their authenticity, which took a lot of time, according to the report. Now with the blockchain-based verification system, Shinhan is expecting to process these documents more quickly and at a lower cost.
Shinhan has actually been exploring blockchain technology for some time now. Like back in 2015 when Shinhan invested around $427,000 in blockchain remittance startup Streami or last year when it trialed cross-border remittances for business customers using Ripple’s blockchain technology.
Already the bank is said to have applied the technology to its “Shinhan Doctors” loan product, this has inherently reduced the time consumption in confirming whether a customer is a regular member of the Hospital Doctors’ Council from two-three days range, to almost instantly. In the report translated from Korean, a Bank official in Shinhan was quoted as saying that the blockchain system is expected to boost the number of “non-face-to-face” loan products processed and that the bank plans to expand the system to more products.
South Korea is a notable world force to reckon with as the 4th largest economy in Asia and a 2018 ranking of number 11 in the world by GDP. The recent turn of one of their largest banks could, however, be more audience for the blockchain technology in the financial sector.
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