Korea's oldest bank, Shinhan Bank, has launched a blockchain-enabled lending platform to accelerate the loan process, the South Korean news agency Yonhap reports on May 27.
Shinhan Bank's blockchain-driven loan system aims to increase the cost and time efficiency of the lending process, which allegedly allows the public to apply for loans online and get their credits without face-to-face interaction.
According to the report, the new system is the first initiative of its kind introduced in South Korea.
In particular, Shinhan Bank's new lending system blockchain technology applies in the verification and verification processes within the network of affiliated institutions and banks. The system allows the parties to register and operate in the network using an encrypted one-time password that allows easy and immediate access to the data needed for approval and loan issuance.
A shinhan bank official said, according to him, that the latest application of block chain technology is part of the institution's attempt to provide remote services to customers. He added that the bank will continue to develop remote access innovations as well as products to expand accessibility.
As the second largest commercial bank in South Korea, Shinhan Bank has actively taken over blockchain technology over the past year. At the end of 201
Recently, a group of four banks successfully issued a blockchain-based type of a legally binding loan agreement called a banknote. The system reportedly reduced the necessary steps for issuing the note by over 50%.