Banking News

Korean Shinhan Bank introduces blockchain credentialing for loan applications

verify qualifications

Yesterday Shinhan Bank announced a new blockchain system to help with verifying documents when granting loans. Some data needed for loans may be easily accessible online. But in cases where it isn’t, loan applicants have to provide documents. To verify the customer information creates a significant amount of work for the bank. The blockchain solution involves affiliated institutions and banks registering, and they are provided with the “a kind of encrypted one-time password (OTP)”.

According to Yonhap news agency, the first solution was to verify that a customer is a member of the hospital doctor’s council.

“The introduction of the blockchain qualification system will contribute to the activation of non-face-to-face products,” said a spokesperson for Shinhan Bank. “We will make efforts to increase customer convenience and expand accessibility by launching various non-face-to-face products.”

Shinhan Bank is involved in several blockchain initiatives. Six months ago, the bank revealed it is using blockchain for interest rate swaps to help standardize interbank communications and cut down on errors. It’s also participating in two payments related projects, including JP Morgan’s Interbank Information Network and Visa’s B2B Connect.