Japanese banks team up to launch blockchain-based financial services platform

Japanese banks and IT companies have teamed up to launch blockchain-based financial services platform, Cointelegraph reported referring to a press release dated March 01.

Banking institutions including Bank of Iwate, Aomori Bank, Akita Bank and Yamanashi Chuo Bank, together with IT firms including AIT Corporation, IBM Japan, and NEC, have established “Fitting Hub” last month.

An electronic delivery service is the first service to be made available on the platform, which is slated to launch in April.

According to the official release, the platform combines distributed register technology and the data encryption technology to build a safe and low-cost system.

“With the electronic delivery service that will be launched this time, it is possible to receive and manage form data from multiple financial institutions and companies on one screen,” it said (as quoted by Cointelegraph).

“For financial institutions and business operators who provide services, such joint service provision can make the system inexpensive compared to separate systems, as well as greatly reduce postage and mailing costs.”

A timeline of events on the official website reveals that the initiative dates back to July 2017 when the financial service platform consortium was formed with six regional banks and one IT vendor. The development of the platform started last January and subsequently, its trial was launched in November.

“We are working on realizing a new business model in the region through provision of a joint business platform incorporating financial authentication and settlement functions,” the website reads (via online translation). “By offering various services with a unified ID, we will support the business of everyone in the company.”