Tech giant IBM has joined forces with Credit Union Service Organization (CUSO) member CULedger to work on blockchain solutions for the credit union services industry to improve its speed and efficiency in service delivery.
IBM and CULedger will collaborate using permissioned blockchain networks that will create new business models and remodel existing business processes for credit unions.
Leveraging blockchain and distributed ledger technology (DLT), the new solutions can help improve processes and services that need identity authentication, such as Know Your Customer (KYC) compliance, lending, and payments services.
Also, the collaboration between IBM and CULedger will give worldwide CUSO members access to the customizable CULedger-issued digital credential, “MyCUID”. With MyCUID, CUSO members can supposedly authenticate any financial transactions between themselves on the network.
“A cooperative model that helps improve the member experience while benefiting all credit unions is the ideal approach to ensuring the next wave of financial innovation for the credit union industry,” said John Ainsworth, CULedger’s CEO and President.
Marie Wieck, General Manager at IBM Blockchain, added that “Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way.”
The first services on CULedger’s blockchain network will reportedly be ready to credit unions members worldwide later this year.
IBM has been expanding its use of blockchain technology through various worldwide projects recently. Earlier in the same week, The Crypto Sight reported that IBM had filed two blockchain patents for security and database management.