The State Bank of India (SBI) announced that it was going to implement Blockchain technology in the management Know Your Customer (KYC) protocols. The Indian bank has partnered with a Blockchain company to develop a business solution that uses smart contracts to self-administer KYC protocols.
The Blockchain platform will provide SBI with an effective solution to increase the efficiency of transactions without compromising either the security of the business or the privacy of its users. Due to its adoption of Blockchain, the bank has joined the growing number of financial institutions that have adopted technology in their operations to reduce costs and improve customer services.
Potential Benefits of Blockchain for Banks
In a press release in early November 2017, co-founder of Primechain Technologies cited some of Blockchain's major benefits in the banking sector, including increased transparency , reduced infrastructure costs and better transaction security.
"The key benefits of Blockchain technology for banks include improved security, reduced infrastructure costs, greater transparency, automatic verification and real-time settlement.
SBI has long been a supporter of Blockchain technology and has participated with others in the advancement of technology-driven projects. The bank was one of the founding members of the BankChain consortium, which focuses on research and development of blockchain technology solutions for the banking sector. Primechain Technologies is also a consortium partner.
Several reports also state that SBI plans to partner with other banks to create Blockchain platforms to improve the efficiency of existing banking services.
"The BankChain community welcomes Intel as the preferred technology advisor, to accelerate this innovation in the BFSI industry of India. "