The second-largest commercial bank in South Korea – Shinhan Bank – has launched a blockchain-enabled lending platform that aims to speed up the loan process, according to South Korean news agency Yonhap.

The bank’s blockchain-powered loan system is designed to cut costs and save time in the lending process. It will work by enabling the public to apply for loans online and successfully get credit without the need for face-to-face interactions.

According to the report, the new system is the first initiative of its kind introduced in South Korea.

The bank has said that the new lending system applies “blockchain technology” in the verification and confirmation processes within its network of affiliate institutions and banks.

It went on to say that the system allows its members to register and operate in the network using “encrypted, one-time passwords” to enable easy and instant access to the data necessary for the approval and issuance of loans.

Remote services for clients

A Shinhan Bank official reportedly said that the recent application of blockchain technology is part of the institution’s attempts to provide remote services for its clients. He added that the bank will continue to develop innovations with remote access as well as products to expand accessibility.

The bank is also part of the Interbank Information Network – the first live blockchain service offered by JP Morgan. The Quorum-based network – which features more than 75 banks – minimises friction in the global payments process, enabling payments to reach beneficiaries faster and with fewer steps.

Shinhan Bank has been actively embracing blockchain technology over the last year. In late 2019, It was reported to be implementing blockchain in internal processes in order to reduce the risks of human error. Previously, the bank also reportedly implemented interest rate swap transactions based on blockchain technology.

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