Blockchain Network For Credit Unions Planned By CULedger And IBMbr>
Credit union industry blockchain initiative CULedger has teamed with tech giant IBM to develop blockchain services for credit unions.
CULedger is a Credit Union Service Organization (CUSO), comprised of more than 30 credit unions and other industry organizations, that focuses on delivering innovative applications to credit unions through its cross-border global distributed ledger platform. It provides advantages to credit unions and their members by reducing risks associated with cybersecurity and fraud, improving member experience, streamlining internal processes and reducing administrative and operational costs.
Under the partnership, the two parties will use permissioned blockchain technologies to create an immutable audit trail that can be used to innovate existing business models and processes for credit unions. According to the firms, a permissioned blockchain network would allow services to be shared among all credit unions, improving identification authentication, regulatory compliance around know your customer (KYC), lending and payments.
CULedger CEO and President John Ainsworth said that a cooperative model that helps improve the member experience while benefitting all credit unions is the ideal approach to ensuring the next wave of financial innovation for the credit union industry.
“We are creating a network through which all members can join and access new services and enabling credit unions to become even more competitive while addressing new market dynamics where members are demanding even more for their financial services provider,” Ainsworth said.
Credit union members worldwide will also have access to MyCUID, CULedger’s consumer-focused global digital identity solution developed in partnership with Evernym. MyCUID allows credit union members to confidently protect themselves from financial fraud and identity theft, while enriching the trusted relationships members have with their credit unions.
Marie Wieck, general manager at IBM Blockchain, said that this decentralized approach using blockchain helps put the customer in control of their own identity.
“Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way,” said Wieck.