ANZ, Westpac and IBM have successfully completed a test run of distributed ledger technology to update the process of issuing, tracking and claiming b
ANZ, Westpac and IBM have successfully completed a test run of distributed ledger technology to update the process of issuing, tracking and claiming bank guarantees.
The pilot used the Linux Foundation`s Hyperledger Fabric V1.0 to create a single source of information with reduced potential for fraud and increased efficiency.
The trial is reportedly addressing other inefficiencies in the bank guarantee process, including the challenges in tracking and reporting of a guarantee`s status through multiple changes, as finextra.com reported.
“With approximately 11,500 retailers across Australia and New Zealand, who use guarantees to support rental obligations, manual tracking of guarantees has been an extremely cumbersome and labour intensive process.”, as Mark Bloom, Scentre Group CFO, told finextra.com.
He believes that the technology can solve major problems in the field.
Nigel Dobson, general manager wholesale digital, digital banking at ANZ, said:
“We have been keen to avoid the hype surrounding blockchain and distributed ledger technologies, and instead focused on practical and deliverable use cases.”
Both companies think that the approach can become wide-spread across the industry. Their next step will reportedly be to invite other organizations to participate in a larger trial.
“Next steps involve encouraging all industry players to adopt this technology so we can better protect and save money for our customers. Beyond that there is no reason why this couldn’t be applied across other industries.”, as Andrew McDonald, general manager corporate and institutional banking at Westpac, explained, as quoted by finextra.com.