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Blockchain News: South Korean Shinhan Bank To Use Blockchain For Expediting Loan Issuance Process

Seoul, South Korea based Shinhan Bank is ready to deploy the Blockchain technology to improve on the slow process for dealing with loan products and services. Local media portal Yonhap published the updates on 27th May.

After realizing blockchain’s proven track record and the tech potentiality more industry giants are coming forward to understand the use cases and to employ various similar practices which the initial players have already adopted. Shinhan the 122 years old public bank of South Korea which was founded in 1897, with over 13400 employees decided to choose blockchain technology to move faster in the process of accepting and approving the loan applications. The tech would be reportedly implemented to accelerate the verification process which is required for credit lending services.

The verification proof such as qualification or certification documents which are needed to submit in the documentation submission process would be done with the help of blockchain verification system instead of doing manual verification which in turn would be more authentic, immutable, time-saving for the customers as well as for the employees, and cost-effective for the organization.

In a way, Shinhan Bank the main subsidiary of Shinhan Financial Group[SFG] has also stunned after seeing the prospective growth in the new technology and ready to upgrade its old verification system to ease out the customers and taken a stand to deliver better and faster service platform.

As per the reports, the blockchain technology-based system has initially applied to ‘Shinhan Doctors’ loan products. With this experiment, the establishment got the real-time confirmation about whether the customer is a regular member of the hospital doctor’s council or not without waiting for the system to confirm later in the second or third day.

One of the Shinhan Bank officials said that the initiative of introducing blockchain based qualification system in the non-face-face products would correspondingly influence the old system processes and this would further promote the technology and its potential benefits for the bank to ease out the customers and to expand their accessibility while launching various other services in more non-face-to-face products.

Shinhan Bank’s Previous Investments In Blockchain Technology

As per the corroborated news, during 2015, Shinhan bank has partaken in the seed funding and invested around $427,000 in the blockchain remittance startupStreami.

In 2018, Shinhan Bank also involved in a pilot project based on cross-border remittances for business consumers using digital ledger technology (DLT) and deployed San Fransisco-based Ripple’s blockchain technology.