The State Bank of India is experimenting with implementation of blockchain solutions in a number of financial processes like the management of its KYC system.
The State Bank of India is experimenting with the implementation of blockchain solutions in a number of financial processes like the management of its Know Your Customer (KYC) system.
The government-owned State Bank of India (SBI) is India`s largest bank with assets over $460 billion and diverse services.
The bank also announced the launch of Bank-Chain, India`s first Blockchain exploration consortium for banks on February 8, 2017.
The goal of the initiative is to gather banking industry players focused on developing blockchain solutions in the financial sector. Some blockchain specialists and technology companies and consultants like IBM, Microsoft and KPMG, and others, have taken part in the collaborative deal, as reported by the local media.
Large private banks are participating, some of them being ICICI, HDFC, Axis, Kotak Mahindra and etc.
“[W]e have formed a forum which has proposed to start with trade finance and loan documents can be put on the block.“, according to M Mahapatra, deputy managing director at SBI, who spoke to cryptocoinnews.com.
More recently, another Indian private bank, Axis, announced it would use Ripple`s blockchain for cross-border remittances.
On a broader scale, IBM is establishing itself as a blockchain technology partner for banks hoping to digitize and adopt financial technology solution. For example, IBM helped private lender Yes Bank implement a blockchain solution to digitize and automate vendor financing solutions for a regional client. Also, IBM has reportedly worked in collaboration with multinational enterprise Mahindra on blockchain solutions for supply chain finance in the country.
It is to be seen whether the financial sector in India will continue investing into blockchain technology and the way it would transform it in the future.