One of South Korea’s largest banks, Shinhan Bank, has revealed that it is adopting blockchain technology for its loan application process with the aim of expediting services for customers.
Shinhan Bank disclosed that it will be implementing the blockchain-powered system to verify items of proof to be submitted for credit loans, such as certification documents and various qualifications.
According to Coindesk, loan applicants were required to submit to the bank these items of proof, which must undergo a time-consuming process of manual verification. However, with the blockchain-powered platform, Shinhan Bank disclosed that the verification of prerequisite documents will not only take less time, but also save on operating costs for the bank.
A representative of the bank revealed that the newly implemented blockchain system will likely boost the number of “non-face-to-face” loans processed.
Shinhan Bank is no stranger to distributed ledger technology, having already used it for its “Shinhan Doctors” loans. With blockchain, the bank successfully reduced the turnaround time to verify the membership status in the Hospital Doctors’ Council from 2-3 days previously to almost immediately.
Moreover, the bank has further plans to use the blockchain platform in other banking products. The bank has been experimenting with blockchain technology since last year, when it carried out cross-border transfers through Ripple’s blockchain solution.
In 2015, Shinhan Bank also invested approximately US$427,000 in blockchain remittance startup Streami.
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