South Korea’s Shinhan Bank Introduces Blockchain Platform for Document Verification

South Korea’s Shinhan Bank has announced the introduction of
a blockchain system that replaces the manual verification process of documents,
according to a report
by CNB Journal.

The blockchain system has been applied to the Shinhan Doctor
Loan product aimed at medical professionals and considerably reduces the time
spent to verify documents such as certificates of employment from two to three
days, to real time, speeding up the processing time of loan approval.

A Shinhan Bank official said
the introduction of the blockchain system will allow the bank to launch a range
of digital products as it looks to expand accessibility and offer greater
convenience.

The launch follows several blockchain initiatives Shinhan
Bank has undertaken over the past 12 months. Blockchain Lab, a special
strategy-oriented research body within Shinhan Bank, was tasked to train
company officials on the potential of blockchain to improve customer services.  And last year, the bank initiated
a project to implement blockchain-based work processes as part of its digital
transformation push. CEO Wi Sung-ho said the technology can decrease human
error and improve efficiency.

“Prior to the blockchain-based process, there had been no
standardized rules governing keeping and managing financial records, a reason
why market participants had to rely on their own records which often times led
to errors despite the cross-checking process requirement,” a Shinhan official
said.

“The new system helps remove such human errors and helps
improve work efficiency through clearer, task-related communications rather
than wasting time on correcting mistakes. The program will be expanded after it
proves to be stable. We will continue to develop new technology that can be put
in place for various departments.”

Banks in South Korea have stepped up their blockchain
activities. IBK Bank has teamed up with Terra, a stablecoin project, to develop
“payment services that consumers can actually experience,” according to Terra’s CEO
Shin Hyun-seung. Woori Bank is
currently working on a blockchain initiative that would allow customers to
exchange currencies as well as make cash withdrawals at airport drive-through
restaurants, fast food outlets, stores and parking lots. The initiative will
begin in October this year. KEB Hana and KB are co-developing a
blockchain-powered real estate platform.