State Bank of India to Beta Test Blockchain Smart Contracts

State Bank of India to Beta Test Blockchain Smart Contracts

State Bank of India will hold the beta launch of their smart contracts next month.

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State Bank of India, which is one of largest banks in India, is finally adopting the blockchain technology. SBI will hold the beta launch of their smart contracts next month. This will soon be followed by know-your-customer (KYC) processes based on the blockchain technology.
In February, 27 banks formed an association called the Bankchain with the aim of exploring the applications of blockchain technology in the banking industry. The new systems being launched by the SBI were developed by Bankchain. Sudin Baraokar, the head of innovation at SBI says that adding smart contracts to the various banking processes will enable many simple processes like non-disclosure agreements.

Right now, SBI procures a lot of the IT processes. There are many internal processes that can benefit from the use of smart contracts. Another key advantage of smart contracts is that there are not many regulations in place for smart contracts. This makes it very attractive to the banking sector. The banks involved in the Bankchain group share their knowledge and technical expertise with each other. This allows SBI to come up with innovative solutions.

SBI is serious about using blockchain technology in the banking sector and this is one of the key reasons they are also planning to set up an innovation hub in Mumbai. The innovation hub will explore the applications of the latest technologies such as artificial intelligence, blockchain, machine learning and many others in the banking sector.The hub will be an incubation center for startups and will also host events like hackathons to attract both experts and vendors. The hub is currently under development and will be launched by the middle of next year.
One of the recent launches by Bankchain has been a know-your-customer platform called ClearChain that lets various banks share the customer information such details of wire transfers and reports of investigations including the Suspicious Activity Reports or SARs.

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