Korea's oldest bank, Shinhan Bank, has launched a blockchain-enabled lending platform to increase the lending process, reports South Korean news agency Yonhap May 27.
Shinhan Bank's blockchain-driven loan system aims to increase the cost and time efficiency of the lending process, which allows the public to apply for loans online and receive their credits without face-to-face interaction.
According to the report, the new system is the first initiative of its kind introduced in South Korea.
In particular, Shinhan Bank's new lending system applies blockchain technology to the verification and verification processes of the affiliate and banking network. The system allows the parties to register and operate on the network using an encrypted one-time password, making it easy and immediate access to the data necessary for the approval and issuance of loans.
An official Shinhan bank officially said that the latest application of blockchain technology is part of the institution's attempt to provide remote services to customers. He added that the bank will continue to develop innovations with remote access and products to expand accessibility.
As the second largest commercial bank in South Korea, Shinhan Bank has been actively involving blocking technology over the past year. At the end of 201[ads1]9, the bank was reported to implement blockchain in internal processes to reduce the risk of human error. Previously, the bank has also reported implementing interest rate swaps based on blockchain.
Recently, a group of four banks successfully issued a blockchain-based type a legally binding loan agreement called a note. The system has reported reduced steps required for the issue note by over 50%.