Deutsche Bank is joining the JPMorgan Chase-led Interbank Information Network (IIN), a blockchain-based cross-border payment messaging system.
The project targets the inefficiencies in the SWIFT payment system, which currently has 11,000 banks. Although the SWIFT GPI upgrade enabled payment tracking, it doesn’t provide the communications needed to resolve compliance queries.
IIN enables the parties to share information in a permissioned way. It acts as a ledger where everyone can view the status of the transaction and address queries seamlessly. In contrast, legacy systems require manual intervention, so IIN increases the efficiency and speed of transactions. However, this was the first feature in a more ambitious project.
Last year JP Morgan’s Emma Loftus elaborated on the purpose of the IIN project.
At present, IIN has over 300 members on its platform. Some of the big names include Société Générale, China CITIC and Mizuho. Deutsche Bank is one of the biggest banks in Europe and the biggest clearer of euro-denominated payments.
“Having Deutsche join — and hopefully Deutsche will be the first of several other large banks — is going to help us drive towards ubiquity and ubiquity is a pre-requisite for the success of the network,” Takis Georgakopoulos, head of wholesale payments at JPMorgan told the Financial Times.
While the size of the network is a significant achievement, the absence of numerous global banks is notable. For example, in Asia, neither Standard Chartered nor HSBC are currently participants. In Europe, two large banks that are very active in the blockchain space but not in IIN are BNP Paribas and ING.
For Deutsche, it is about offering better services to its customers while incurring lower costs. “It (joining IIN) is definitely directionally a very important step for us because it will help drive (customer) satisfaction,” said Ole Matthiessen, head of Deutsche’s cash management division.
Meanwhile, IIN is working well for JPMorgan. Georgakopoulos said the platform has enabled the bank to resolve payments issues within hours instead of weeks.
IIN expects to reach the target of 400 banks on its platform by the end of 2019. The platform uses Quorum, the enterprise version of Ethereum developed by JP Morgan.
JP Morgan’s IIN uses the existing correspondent banking infrastructure. Many other blockchain payments initiatives look to avoid it. Last week, Mastercard announced it had partnered with R3 to develop a blockchain-powered cross-border payments solution. This aims to use Mastercard’s network. Likewise Visa has its B2B Connect project.
A few months ago, IBM soft-launched its IBM World Wire blockchain payment platform. It leverages Stellar to enable direct bank-to-bank payments using tokens. Stellar and Ripple’s xRapid have similar objects to avoid the correspondent banking network and enable instant payments.
List of IIN banks
Americas
BanBajío Banca Mifel Banco Actinver, S.A. Banco Aliado Banco BICE Banco BCT SA Banco Bisa Banco Bradesco S.A. Banco CMF S.A. Banco Davivienda S.A. Banco Daycoval S.A. Banco de Bogota Banco de Crédito del Perú Banco de Galicia y Buenos Aires Banco do Brasil New York Branch |
Banco Ganadero Banco General Banco Industrial Banco Internacional del Peru Banco Lafise Banco Mercantil Santa Cruz Banco Nacional de Bolivia Banco Nacional de Costa Rica Banco Nacional de Panama Banco Popular Dominicano Banco Regional Banco Security Bank of Bahamas Limited Banorte Banreservas Bank of Montreal |
BCT Bank International Credicorp Bank Ficohsa First Tennessee Bank Global Bank Corporation Grupo Bursátil Mexicano Itau Unibanco S.A. JPMorgan Chase National Bank of Canada Republic Bank Royal Bank of Canada The Toronto-Dominion Bank Banco Inbursa S.A. Banco Continental Banco Ficohsa Panama |
Europe
| Alior Bank SA Allied Irish Bank Banca Monte dei Paschi di Siena S.p.A Banco de Investimento Global S.A. Banco de Sabadell Banco Santander Bank Hapoalim B.M. Bank Leumi Le-Israel B.M Bank Polska Kasa Opieki S.A. Bankia Bankinter Banque Internationale de Commerce – BRED (Suisse) SA Banque Thaler SA Bayerische Landesbank Caixabank |
CBH Compagnie Bancaire Helvétique S.A. CIM Banque S.A Geneve Cooperatieve Rabobank U.A. Credit Agricole S.A. Danske Bank Erste Group Bank AG Gonet & Cie SA Helaba -Landesbank Hessen -Thuringen Israel Discount Bank Limited Nationwide Building Society Norddeutsche Landesbank Girozentrale Nordea PKO Bank Polski S.A. Privatbank IHAG Zurich AG Reyl & Cie SA |
Skandinaviska Enskilda Banken Société Générale The First International Bank of Israel Ltd UniCredit Bank Austria Caixa Central de Credito Agricola Mutuo UBS Switzerland AG Banca Popolare Di Sondrio S.C.P.A. East-West United Bank SA Caixa Geral de Depositos Mizrahi Tefahot Bank LTD BLOM Bank France |
Asia-Pacific
| Australia and New Zealand Banking Group Limited Axis Bank Limited Bank of Dalian Co., Ltd Bank of Nanjing BRAC Bank Limited China CITIC Bank International Limited China Guangfa Bank China Zheshang Bank Chong Hing Bank Limited Eastern Bank Limited East West Banking Corporation Ho Chi Minh City Development Joint Stock Commercial Bank ICICI Bank Limited Indovina Bank Ltd Industrial Bank Co., Ltd Joint Stock Commercial Bank for Investment and Development of Vietnam KASIKORNBANK Public Company Limited KEB Hana Bank Military Commercial Joint Stock Bank Mizuho Bank, Ltd. MUFG Bank, Ltd. Nanyang Commercial Bank (China), Limited National Australia Bank Limited NongHyup Bank Prime Bank Limited PT Bank Central Asia Tbk PT Bank CIMB Niaga Tbk PT Bank Negara Indonesia (Persero) Tbk Resona Bank, Ltd. Rizal Commercial Banking Corporation Saigon Thuong Tin Commercial Joint Stock Bank Shanghai Rural Commercial Bank Shinhan Bank |
Sumitomo Mitsui Banking Corporation Taipei Star Bank Taishin International Bank Co., Ltd The 77 Bank, LTD. The Bank of Nagoya, Ltd. The Norinchukin Bank Union Bank Of The Philippines Vietnam Joint Stock Commercial Bank for Industry and Trade Westpac Banking Corporation Woori Bank Yes Bank Limited The Bank of Kyoto, Ltd. Kansai Urban Banking Corporation The Kinki Osaka Bank, Limited The Minato Bank, Ltd. The Musashino Bank, Ltd. The Tajima Bank, Ltd. Aozora Bank, Ltd. Bank of the Ryukyus, Limited The Aichi Bank, Ltd. Shinsei Bank, Limited The Bank of Okinawa, Ltd. The Gunma Bank, Ltd. The Higo Bank, Ltd. The Oita Bank, Ltd. Union Bank of India The Michinoku Bank, Ltd. The Taiko Bank, Ltd. The Iyo Bank, Ltd. The Kyoto Chuo Shinkin Bank The Hokkoku Bank, Ltd. Bank of Ayudhya Public Company Limited The Kagawa Bank, Ltd. United Commercial Bank Limited The Aomori Bank, Ltd. Dhaka Bank Limited Saitama Resona Bank, Limited |
Sony Bank Inc. The Asahi Shinkin Bank The Awa Bank, Ltd. The Hokuto Bank, Ltd The Keiyo Bank, Ltd The Kiyo Bank, Ltd. The Korea Development Bank The Shonai Bank, Ltd The Tochigi Bank, Ltd. The Yamagata Bank, Ltd. The Hiroshima Bank Limited The Tama Shinkin Bank Bank Asia Limited Sumitomo Mitsui Trust Bank, Limited The Bank of Saga LTD. The Yamaguchi Bank, Ltd. The SAN-IN GODO Bank, Ltd The Chugoku Bank, Limited Suruga Bank Limited Bank of the Philippine Islands Export Import Bank of Bangladesh Limited Thanachart Bank Public Company Limited The Shiga Bank, Ltd. The Shizuoka Bank, Ltd Kiraboshi Bank, Ltd. MCB Bank Limited – Sri Lanka Branch North Pacific Bank, Ltd. People’s Bank The Daisan Bank, Ltd. The Federal Bank Ltd The Gifu Shinkin Bank The Kagawa Bank, Ltd. The Kanagawa Bank, Ltd. The Keiyo Bank, Ltd The Kinki Osaka Bank, Limited. The Kita-Nippon Bank, Ltd. The Kyoto Shinkin Bank The Okazaki Shinkin Bank The Seto Shinkin Bank The Tokushima Bank Limited
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Central & Eastern Europe, Middle East and Africa
| Ahli United Bank B.S.C Al Rajhi Banking & Investment Corporation Alawwal Bank Alfa Bank Joint Stock Company Allied Bank Limited Arab Jordan Investment Bank Bank ABC (Arab Banking Corporation B.S.C.) Bank Al Habib Limited Bank Alfalah Limited Bank Muscat Bank of Sharjah Barclays Bank Tanzania Limited Barclays Bank Zambia PLC Banque du Caire SAE Banque Libano-Francaise SAL BLC Bank SAL Cairo Amman Bank PLC Commercial Bank of Africa Limited Commercial International Bank (Egypt) S.A.E Credit Bank of Moscow Credit Libanais SAL DenizBank A.S. Export Development Bank of Egypt Fransabank El Djazair SPA Fransabank SAL Gazprombank Habib Metropolitan Bank Limited The Housing Bank of Trade and Finance – Algeria Joint-Stock Company BCS-Investment Bank Jordan Islamic Bank JS Bank Limited KCB Bank Kenya Limited |
Kuveyt Turk Katilim Bankasi A.S. Kuwait Finance House MauBank Limited MCB Bank Limited Meezan Bank Limited National Bank of Fujairah P. J.S.C. National Bank of Kenya Limited National Bank of Kuwait S.A.K.P. Nedbank Limited Odea Bank Anonim Sirketi Saradar Bank SAL Soneri Bank Limited The Housing Bank for Trade and Finance Turkiye Finans Katilim Bankasi A.S Turkiye Vakiflar Bankasi T.A.O. Bank Audi SAL National Bank of Kuwait – Egypt QNB Finansbank A.S. Sohar International Bank Standard Bank (Mauritius) Limited Standard Bank of South Africa Limited Bank of Beirut SAL Bank Saint Petersburg BBAC SAL Gulf International Bank B.S.C Bank Avangard Bank Al Etihad Societe Generale de Banque Au Liban SAL Bank Uralsib Creditbank SAL |
United Bank Limited First Ukrainian International Bank BankIslami Pakistan Limited JSC ATFBank Joint Stock Company Surgutneftegasbank FirstRand Bank Limited The Bank of Punjab Stanbic Bank Botswana Limited Bank Windhoek Limited Silkbank Limited Stanbic Bank of Kenya Limited International Bank of Azerbaijan Ziraat Bankasi A.S. Yapi Ve Kredi Bankasi A.S. The Mauritius Commercial Bank Limited BLOM Bank SAL Al Salam Bank Bahrain BSC AKBANK T.A.S. Ahli Bank SAOG Al Ahli Bank of Kuwait – Egypt Al Salam Bank – Algeria –SPA Banque Nationale d’Algerie Barclays Bank Seychelles Limited BLOM Bank Egypt S.A.E. Absolut Bank (PAO) DIB Bank Kenya Limited Fidelity Bank Ghana Limited JSCMB Ipotekabank AK BARS Bank Metallurgical Investment Bank Public Joint Stock Company Commercial Bank Absa Bank Limited Anglo Gulf Trade Bank Arab Investment Bank Bahrain Islamic Bank Central Bank of Bahrain Central Bank of Seychelles |
