Financial sector, commercialization of block chain technology commercialization
The banking industry is launching full-fledged commercialization of block-chain technology. Block chaining technology is estimated to have the potential to speed up the banking process and reduce costs. It can be used for various transactions such as money transfer, stocks, futures. Global financial companies have built their own block-chain research and development (R & D) teams and are building extensive collaborative networks.
Domestic commercial banks are applying the block chain technology to various tasks in succession. Shinhan Bank introduced a block chain in the ‘interest rate swap transaction (IRS)’ for the first time in December last year. The interest rate swap transaction is a transaction that changes the obligation to pay interest on mutual debts if the parties can raise funds at a favorable interest rate. In the past, I had to correct the terms of the transaction by email or fax, if there was anything wrong with it.
Shinhan Bank has chosen to share transaction terms with its block chain leader through its own block contract software ‘Smart Contract’. You can check real-time information on the interest rate information, date, and amount of money with SmartContact.
A Shinhan Bank official said, “We have blocked the possibility of ‘information discrepancies’ that may occur in interest rate swap transactions. We will verify whether we can apply block chain technology to export and import finance, foreign exchange, credit, and derivatives business.” Said.
Other banks are busy too. Woori Bank has developed a “donation management account” based on a block chain and is pending a patent. If you put money in this account, interest will be generated as a donation token every month, transferred to the ‘digital wallet’ (electronic wallet) and transferred to the donor organization designated by the depositor. The block chain technique can be used to determine where the token moves. KEB Hana Bank will establish a global loyalty network (GLN), an integrated payment network capable of exchanging points and mileage through 30 groups of companies in 10 countries including Shinsegae Duty Free Shop, Mizuho Bank of Japan, and Taiwan Taishin Bank. .
Trade banking is the most active sector in the financial industry. Seven global banks, including HSBC Group in the United States, Citigroup in the United States and BNP Paribas in France, signed a memorandum of understanding (MOU) in October last year to promote digital trade finance. Trade finance refers to the process of establishing a letter of credit (L / C), processing of shipping documents, and settlement of accounts between buyers and sellers in trade transactions. In the past, document processing methods were complicated, and standards for banks were different. Digital standardization of trade finance processes using block chain technology can simplify the transaction process and reduce the risk of non-payment. “China is also building a new regional network based on the block chain in India and other countries,” said Hye Won, a researcher at the Korea International Finance Center. “Domestic banks also need to check trade finance participation.”
Reporter Yang Min-cheol listen@kmib.co.kr
Source: http://news.kmib.co.kr/article/view.asp?arcid=0924053338&code=11151300&cp=nv
