Financial institutions across the world have started showing interest in the use of blockchain technology for banking and financial sector. One of the leading companies in the forefront of this new technology adoption is R3. The New York-based fintech startup working on blockchain based fintech solutions has created a group of over 40 international banking institutions to create a custom Ethereum-based cross border blockchain solutions for them. This banking consortium now has found another member in Hana Financial Group.
The South Korean financial institution is the first from its country to join the R3 Consortium, which already has financial institutions like Citigroup, The Bank of America, Goldman Sachs Group, Morgan Stanley, UBS AG, JPMorgan & Chase, and many others. The expected result to come out of this elite inter-networking is fast and affordable SWIFT fund transfer between the accounts belonging to different banks.
Earlier reports have already established that the blockchain technology can help the banking sector save millions of dollars in compliance and regulatory costs. R3 consortium has so far gained some significant ground in this regard. The consortium recently announced the introduction of Corda, their latest distributed private ledger specially built for the purpose. In addition, the consortium has managed to build some great partnerships that will enable faster implementation,
Some of the significant partnerships in this regard includes the one with Microsoft to make use of its Azure Blockchain as a Service to implement the technology among partner banking institutions.
The announcement by Hana Financial Group states that the company is looking forward to making use of the global blockchain services provided by Corda in its overseas remittance services and security verification processes. Hana Financial Group intends to pass on the benefits of blockchain technology to its customers by lowering their banking fees. If things go according to the plan, then Hana Financial Group will be fully implementing the blockchain technology to stay on par with other banks that are part of the consortium.
Today’s fintech sector is definitely seeing some interesting developments. It is expected to become more interesting as new applications of blockchain technology are introduced to the industry.