State Bank of India to Implement Blockchain-Based KYC Protocols
The State Bank of India, the largest Indian bank, decided to use blockchain technology for its Know Your Customer processes. SBI is also one of the founding members of BankChain, a consortium of Indian and other middle-eastern banks, created with the purpose of exploring the various possibilities provided by the blockchain and developing solutions based on this technology.
SBI has sealed a partnership with the Indian startup Primechain Technologies, which is also part of the BankChain community, to develop solutions that use smart contracts to self-manage KYC protocols.
The solution should improve the efficiency of the financial transactions, without compromising security and privacy.
SBI sees a future where banks work together in order to lead to a wider use of the blockchain technology that would enable new services, “such as P2P lending, crowdfunding, and digital marketplaces that enable financial inclusion”, as stated by Sudin Baraokar, Head-Innovation of State Bank of India, who also stated that Intel will be the preferred technical advisor for the Bankchain association for that evolution of the indian banking system and insurance industry that SBI looks committed to lead and to implement through the blockchain.
The vision is still one that acknowledges the groundbreaking, exciting potential of the blockchain technology, especially for what concerns the way personal data is managed and transferred. Although the decentralized nature of the blockchain technology implies the downfall of intermediaries in this kind of transactions, it is up to banks to reshape their role and find a new dimension in this new landscape.
This article was originally published on the Spidchain blog
