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Shinhan Financial Group (Shinhan Bank), South Korea’s oldest bank, has unveiled a blockchain-based platform to hasten loan process, South Korean news outlet Yonhap reported.
The new system will utilize blockchain technology to verify loan application and documents without face-to-face interaction. It aims to improve efficiency and processing time while lowering associated administration cost as it allows the public to apply for loans online and receive faster credits.
“The introduction of the blockchain qualification system will contribute to the activation of non-face-to-face products,” a Shinhan Bank spokesperson said (via online translation). “We will make efforts to increase customer convenience and expand accessibility by launching various non-face-to-face products.”
Shinhan bank’s new loan process incorporates blockchain technology in the verification and confirmation phases within a network of affiliated banks and institutions. The lending system enables parties to register and operate in the network via an encrypted one-time password. This provides easy and instant access to the data needed for approving and issuing loans.
The bank first applied the system to “Shinhan Doctors” products. The report revealed the process of confirming regular members was “shortened in real time in the second and third day.”
According to the media outlet, the project is part of Shinhan Bank’s effort to improve its bank services and extend its product to remote clients. It is also the first of its kind in the country.
As previously reported, Shinhan Bank sought to expand the use of blockchain technology in its processes since last year. It fully embraced blockchain technology with transactions that involve Interest Rate Swap (IRS) and smart contracts.
