Blockchain Financial Services Platform Planned By Japanese Banksbr>
Five Japanese banks have joined forces to develop a financial services platform using blockchain technology.
In a joint press release, Bank of Iwate, Bank of Yokohama, Aomori Bank, Akita Bank, and Yamanashi Chuo Bank said that they are collaborating with IBM Japan, AIT Corporation and NEC to establish the platform, dubbed “Fitting Hub.” The platform will reportedly combine distributed register technology and the data encryption technology to build a safe and low-cost system.
“The financial service platform is a service provision infrastructure system built on the cloud in order for financial institutions and business operators to jointly provide financial services,” the banks said. “By integrating authentication functions, users are able to use services without being conscious of financial institutions.”
The banks said that the first service to be made available on the platform is an electronic delivery service, which is slated to launch in April.
“With the electronic delivery service that will be launched this time, it is possible to receive and manage form data from multiple financial institutions and companies on one screen,” they said. “For financial institutions and business operators who provide services, jointly providing services can make the system inexpensive compared to single case, as well as greatly reduce postage and mailing costs.”
Hiroyasu Takahashi, President and Representative of Fitting Hub, said that in Japan it is difficult to develop IT business due to lack of funds, human resources, and even resources such as network and technology. As a result, he said many regions suffer from low economic growth.
“Through the provision of a financial services platform, we will create new value in the region by integrating the essential functions of finance “certification” and “settlement” and the business and ideas of everyone in the regional company on the net,” Takahashi said. “We started fitting hub with regional financial institutions and IT vendors to connect the people in the community and design a new business model.”