CULedger teams up with IBM for blockchain network
According to the firms, the partnership aims to use permissioned blockchain technologies to extend credit unions’ reach to a broader range of new members, particularly SMEs that currently lack access to financial services.
A permissioned blockchain network would allow services to be shared among all credit unions, improving identification authentication, regulatory compliance around know your customer (KYC), lending and payments.
“A cooperative model that helps improve the member experience while benefitting all credit unions is the ideal approach to ensuring the next wave of financial innovation for the credit union industry,” says John Ainsworth, CEO and president, CULedger.
“Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way. This decentralised approach using blockchain helps put the customer in control of their own identity,” says Marie Wieck, general manager, IBM Blockchain.
Credit union members worldwide will also have access to a CULedger issued digital credential, called MyCUID that adheres to the privacy requirements supported by the Sovrin Foundation. MyCUID allows members to conduct transactions among any credit union on the network.
Blockchain’s potential value to the enterprise is expected to grow to more than $360 billion by 2026, then surge to more than $3.1 trillion by 2030, according to Gartner.
CULedger’s blockchain network will be available to credit unions worldwide beginning later in 2019.
The credit union industry has 260 million members worldwide with over $1.7 trillion of circulating assets.