South Korea’s Shinhan Bank Implements Blockchain To Reduce Human Errorbr>
Shinhan Bank, one of South Korea’s largest commercial banks, has integrated blockchain technology in its financial services and internal protocol management to reduce human error.
The blockchain project, spearheaded by Shinhan Bank CEO Wi Sung-ho, is part of the bank’s digital transformation. According to the bank, on November 30, it implemented Interest Rate Swap (IRS) using blockchain technology. The bank also adopted smart contract to improve the accuracy and reliability of work products.
Shinhan said that 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.
“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 bank said. “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.”
Earlier this year, Shinhan partnered with blockchain payments platform OmiseGo to accelerate the adoption and implementation of blockchain technology in Asia. Last month, the bank’s special strategy-oriented research body, Blockchain Lab, conducted a blockchain training session where company officials were encouraged to come up with ideas to implement the technology in departments that require frequent data sharing and verification with outside bodies.