A major South Korean bank is utilising blockchain technology to speed up its approval process for loans, industry website Coindesk has reported, citing information from the local press.
According to a recent report from South Korean news agency Yonhap, Shinhan Bank, which is one of the oldest and largest lenders in the country, will use a blockchain platform to verify qualification and certification documents and other items of proof required for credit lending. The existing process requires customers to submit such items directly to the bank for manual verification. Shinhan hopes that blockchain technology can speed up that process and make it more cost efficient.
According to the report, the lender has already used the technology to improve the verification process for its “Shinhan Doctors” loan product. Using blockchain, the bank was able to reduce the time for confirming whether a customer is a regular member of the Hospital Doctors’ Council from two to three days to “real time.” Reportedly, Shinhan plans to apply the technology to more products.
South Korea is one of most important regions for blockchain and cryptocurrency trading, in particular. The cryptocurrency boom of late 2017 and early 2018 prompted the country’s regulators to impose stricter rules on crypto trading, in an effort to curb speculation and money laundering risks.
It was recently reported that South Korea had held a pan-governmental meeting to establish closer monitoring of the crypto market in the wake of the recent digital currency surge. During the meeting, ministers and regulators reportedly discussed a number of measures aimed at mitigating the potential risks the surging market could pose for investors. Those included a plan to monitor domestic crypto exchanges, as well as a pledge to take robust action against any detected fraud by maintaining close coordination between law enforcement authorities and the financial regulator, online publication Cointelegraph notes.
Featured image: railway fx / Shutterstock.com