Korean bank Shinhan launches loan system based on blockchain

Korean bank Shinhan launches loan system based on blockchain

Shinhan Financial Group (Shinhan Bank), the oldest bank in South Korea, has unveiled a blockchain-based platform to speed up the lending process, South Korean media Yonhap reported.

The new system will use blockchain technology to check loan applications and documents without face-to-face interaction. It aims to improve efficiency and processing time while reducing administrative costs because it allows the public to apply for an online loan and receive credit faster.

"The introduction of the blockchain qualification system will contribute to the activation of products other than face-to-face,"Said a spokesman for the Shinhan Bank (via an online translation). "We will strive to increase customer convenience and increase accessibility by introducing a variety of non-face-to-face products."

Shinhan's new lending process incorporates blockchain technology into the verification and confirmation phases of a network of banks and affiliated institutions. The loan system allows parties to register and operate on the network using an encrypted one-time pbadword. This provides easy and instant access to the data needed to approve and issue loans.

The bank first applied the system to "Shinhan Doctors" products. The report revealed that the confirmation process for regular members was "shortened in real time on the second and third days".

According to the media, the project is part of Shinhan Bank's efforts to improve its banking services and extend its product to remote customers. It is also the first of its kind in the country.

As previously stated, Shinhan Bank has sought to expand the use of blockchain technology in its processes since last year. It fully integrated blockchain technology with transactions involving interest rate swaps (IRS) and smart contracts.