The Blockchain Technology is once again proving its worth in the banking industry. The State Bank of India has launched its new system backed by the Blockchain Technology. According to the bank’s head of innovation, the integration of Blockchain in their processes will enable the bank to streamline their current operational procedures in the areas of procurement and other IT-related processes.
It also aims to provide simple solutions to their non-disclosure agreements. This will be another wonderful breakthrough in the banking sector. Aside from that, the bank is also looking at other key possibilities and innovations using Blockchain, they are confident in releasing these advancements by 2018.
State Bank of India to Beta Test Blockchain Smart Contracts Next Month
The State Bank of India (SBI) is planning a beta launch of smart contracts by next month, with blockchain-based know-your-customer (KYC) processes soon after.
According to Sudin Baraokar, head of innovation at SBI, the systems have been developed by Bankchain – a consortium of 27 banks that was launched in February to explore blockchain solutions for the banking sector.
“A lot of internal processes can be contracted. We do a lot of IT procurement, a lot of it can be implemented using blockchain.”
Talking about the benefits of the Bankchain project, Baraokar said that the group shares technical expertise and allows SBI to focus on new solutions. These include smart contracts, which he said are “not regulatory heavy.”
SBI has also revealed plans to set up an innovation center in Mumbai to explore new technologies like blockchain, artificial intelligence, machine learning, among others. The hub is expected to host hackathons and incubate startups, drawing on both internal experts and outside vendors.
The innovation center is currently in the design stage and is expected to launch by the middle of next year, according to Baraokar.
Back in May, Bankchain launched a KYC platform called ClearChain, aimed to allow banks to share information about customers. The system reportedly allows for the exchange of customer information, including data on wire transfers and investigatory reports, including Suspicious Activity Reports (SARs).