As reported by The Korea Times on December 10th 2018, South Korea’s second largest bank, Shinhan Bank, are to implement blockchain technologies. The initiative comes as the bank wish to improve efficiency and decrease human error with regards to internal processes.
The bank, who was recently named as South Korea’s Best Wealth Management Bank at the Korea Country Awards 2018, has been exploring cryptocurrency and blockchain for some time and is now applying the technology to operations including financial record-keeping. Their mission is to reduce mistakes made by humans & improve efficiency overall.
A spokesperson for the bank stated how they intend to improve reliability and efficiency in regards to their services:
“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 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.”
The bank has also enrolled over 400 senior staff on blockchain training courses, between March and November this year, in an effort to enhance knowledge of the nascent technology and how it can be applied to create innovative applications to improve banking services.
According to The Korea Times, the bank announced it had implemented interest rate-swaps based on blockchain tech — citing this development as a “first” for a South Korean lender.
In November 2017, the bank, who back two of South Korea’s largest crypto exchanges — UPbit and Gopax — released plans of potentially offering cryptocurrency wallets to its client base.