South Korean Shinhan Bank Weighs Blockchain for Reducing Human Errors

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Shinhan Bank, a leading South Korean bank, has begun a process of implementing blockchain solutions in its daily working process, local media reported on Monday. The project is part of a broader plan aiming to integrate new technologies with traditional financial services systems.

Shinhan Bank decided to use distributed ledger technology (DLT) in its internal protocols and systems due to blockchain’s capability to track all activities. On the one hand, DLT-driven solutions can improve transparency and trust issues while also implementing a package of standardized rules in managing financial records and thus delivering working efficiency on the other hand, a bank official told the Korean Times newspaper.

“Prior to the blockchain-based process, there had been no standardized rules governing the keeping and managing of financial records, a reason why market participants had to rely on their own records which often times led to errors despite the cross-checking process requirement,” a Shinhan official said as quoted by the Korean Times.

“The new system helps remove such human errors and helps improve work efficiency through clearer, task-related communications rather than wasting time on correcting mistakes. The program will be expanded after it proves to be stable. We will continue to develop new technology that can be put in place for various departments.”

There is no available information on the scale of the planned blockchain implementation. The bank has already conducted a DLT trial by settling an Interest Rate Swap transaction at the end of last month. The financial institution has its own Blockchain Lab, which analyzes how blockchain can improve customer services. About 400 Shinhan Bank senior officials and banking specialists took part in training sessions this year with the goal to get inspired by the DLT and to create blockchain projects for data sharing and verifications.

Shinhan Bank is a part of Shinhan Financial Group (SFG), which owns more than 20 banks worldwide, among them divisions in the United States, the United Kingdom, Germany, Australia, China, Hong Kong, Japan, Vietnam, Mexico, and India. Currently, it is unknown whether the SFG will implement blockchain solutions in any of those banking subsidiaries.

The group also has interests in equity fund management, capital investment, and banking card development. In April this year, Shinhan Card division signed a partnership with cryptocurrency project OmiseGo (OMG).


Source:  CRYPTOVEST