Blockchain Loan System Introduced By South Korea’s Shinhan Bankbr>
Shinhan Bank, one of South Korea’s largest commercial banks, has introduced a blockchain-based loan system to speed up the loan process.
South Korean news outlet Yonhap reported the new system uses blockchain technology to verify proof documents submitted by borrowers during “non-face-to-face” lending. The new system has been developed to improve efficiency and processing time while lowering associated administration cost as it allows the public to apply for loans online and receive faster credits.
“The introduction of the blockchain qualification system will contribute to the activation of non-face-to-face products,” the bank said. “We will make efforts to increase customer convenience and expand accessibility by launching various non-face-to-face products.”
The new system is reportedly part of Shinhan Bank’s broader effort to improve remote client access to bank services and expand product access. It was first applied to “Shinhan Doctors” products, which resulted in immediate reductions in confirmation times.
“The process of confirming that the customer is a regular member of the hospital doctor’s council has been shortened in real time in the second or third day,” the bank said.
This is not the first Shinhan Bank implemented blockchain to its services. Late last year, the bank integrated blockchain technology in its financial services and internal protocol management to reduce human error. The bank also adopted smart contract to improve the accuracy and reliability of work products.