Korean first and oldest bank – Shinhan Bank has announced its new development for a blockchain-based lending system for the fast lending process.
According to the South Korean news site Yonhap reports, Shinhan Financial Group aims to use the blockchain-powered loan platform to reduce the time processing in the lending process and increase the efficiency in the system. By using blockchain technology, the system will verify proof documents and allow users to apply for loans without non-face-to-face interaction.
Shinhan Bank also revealed that this is the first time that blockchain has been applied to this kind of system and introduced in South Korea. The bank pointed out some of the steps when lending in the traditional lending system that would slow down the process. For instance, the customer had to issue verification documents directly to the bank and then had to wait for “a considerable amount of time” for the bank to verify it. In comparison, the new blockchain-powered system could lessen the time in verification and confirmation process. The system also allows borrowers to register in the network using a kind of encrypted one-time password (OTP) through blockchain technology, which makes it easy for access to the data necessary for the approval when applying for loans.
A Shinhan Bank official noted that the application of the blockchain to this system will be a part to provide non-face-to-face services in the future. The bank also aims to increase customer convenience and expand accessibility by developing some upcoming remote services.
Shinhan Bank is the South Korean second-largest commercial bank. Last year, the bank planned to introduce a system that could reduce the risk of human error using blockchain for automatic chain process.
South Korea has been making efforts using blockchain to increase the quality of its services and lifestyle. As The Crypto Sight reported recently, Seoul also introduced its upcoming blockchain implementation in its citizen cards for in its new authentication system.