Iwate Bank takes the lead in regional rejuvenation with “Fitting Hub”
On March 1st, 2019, Iwate Bank announced the starting of operation of the financial service platform utilizing Blockchain technology. This service has been jointly developed by 4 regional banks nationwide, namely Iwate Bank, Aomori Bank, Akita Bank and Yamanashi-Chuo Bank. It is being operated by a newly formed joint venture company named “Fitting Hub”, which was includes system integrators AIT, NEC and IBM in addition to the four banks.
The financial services platform is characterized by multi-bank authentication and joint service schemes. By using a common ID (corporate number) to jointly build corporate services with multiple financial institutions and companies, it is possible to provide new services that did not exist before. Furthermore, the use of distributed ledger technology and encryption technology makes it possible to build collaborative services without disclosing data mutually, which is a major feature of this platform.
The electronic delivery service issues and manages corporate forms. Forms can be downloaded as PDF files in addition to browsing in a web browser. Also, new forms can be added easily and design changes can be made with simple configuration changes, and therefore the related cost burden can be reduced. Since the data is immutably stored in the blockchain and cannot be falsified even by any participant, it is also a feature that the ability to provide documentary proof is much higher than other electronic delivery services.
Hironari Takahashi, President & CEO of Fitting Hub, commented on the companies website: “Today’s business is being driven by technology, whether it is domestic or global. In particular, platform businesses like social networking services (SNS) and electronic commerce continue to prosper, as certain companies have monopolized the industry in some cases. However, in rural Japan, the lack of resources such as funding, human resources, networks and technology skills makes it difficult to develop IT businesses. As a result, many regions continue to suffer from low economic growth and the accompanying hollowing out of the economy. We create new value in the region by integrating the essential functions of “certification” and “settlement” with the business and ideas of regional companies on the Internet through the provision of a financial service platform. With the intention of helping to do this, we launched “Fitting Hub”with regional financial institutions and IT vendors. We want to connect the community and become a node that designs new business models.”
The journey towards the new platform started as early as July 2017, with six regional banks and one system integrator. The platform was built and tested throughout 2018, and put into test operation in November. The joint venture company was established in February 2019, and the platform went live this month.
Kaizuka-san, IBM Blockchain Solution Leader, was excited about seeing the joint venture established: “ I have been honored to be able to work with Iwate Bank and other members of the consortium through the implementation by providing expertise in business and technical layers including Hyperledger Fabric, authentication and cloud.”
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