Krungsri and IBM apply blockchain to related party transactions
The two parties say “the blockchain-based digitised paperwork process has made information secured, transaction transparent, with increased operation efficiency and reduction of operation duration”.
Krungsri is Thailand’s fifth largest universal bank and provides a broad range of products and services, including wealth management, credit cards, non-life insurance, asset management, securities trading, auto hire purchase, equipment leasing, factoring, micro-finance and instalment loans.
“With thousands of agreements exchanged daily between the bank and its subsidiaries, Krungsri decided to improve related party transaction process efficiency between the transacting parties – by automating contract management processes using blockchain technology,” the bank explains.
Krungsri worked with IBM Cloud Garage “to turn the initial concepts into reality within three months”, using the Hyperledger Fabric and blockchain services on IBM Cloud. Hyperledger Composer was also used as the development toolset and framework to accelerate the development of the blockchain application.
Voranuch Dejakaisaya, Krungsri’s CIO and COO, says the results of the trial project have been “satisfactory”.
“The goal is to digitise the paperwork process, store document contents with authentication and approval information in the blockchain-based database, and expand this service platform across the bank and our subsidiaries,” she says.
“We expect the project to upgrade our back-office efficiency, while converting physical documents to electronic files. With the decentralised solutions, the process run on blockchain brings transparency, less errors and more security.”
Reducing operating costs and improving customer service delivery are also flagged as potential advantages by Dejakaisaya.