SBI Will Use Blockchain For Contracts, KYC; Is This Blockchain’s Biggest Push In India?
Considering that SBI is showing the way, other banks will have to follow suit now
India’s largest bank: State Bank of India or SBI is leading the charge towards embracing technology, namely Blockchain, and setting an example for other banks.
In a landmark decision, whose implications would be phenomenal in coming day, SBI has decided to use blockchain for processing and saving contracts, KYC (Know Your Customer) and other banking operations.
Considering that SBI is showing the way, other banks will have to follow suit now.
Is this the dawn of blockchain age in India?
SBI Embraces Blockchain, In a Big Way!
SBI has confirmed that starting December, they will start rolling out specialized banking solutions, using blockchain technology.
We had earlier stated that RBI is dead against usage of bitcoins, but open to blockchain technology. It seems SBI has taken the lead here by following RBI’s direction.
Sudin Baraokar, head of innovation, SBI confirmed this, as he said,
“By next month, we should have two beta production solutions ready for use by the 27 banks. We will also invite further participation. The beta production that will be ready are smart contracts and second is KYC”
These new initiatives by SBI are part of products and solutions outlined under Bankchain – a consortium of 27 banks, who have resolved to use blockchain technology in coming days.
Bankchain was formed in February this year with 8 banks, which had SBI, Axis bank and ICICI Bank as primary members. Now, this consortium has expanded to 27 banks.
“BankChain is a big move. It is getting all banks together and collaborating. It is also de-risking our investment in emerging tech, so that all banks can come and invest at once…we can also share knowledge and reduce the cost.”
How Can Blockchain Change Banking?
Blockchains are dynamic blocks, interlinked with cryptography, and are continuously growing. Wiki explains the process as “A blockchain can serve as an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.”
It is basically another version of distributed computing system, and security and integrity of data is what makes it as an impeccable ally of banking systems, all over the world.
Under their innovation push, SBI will now use blockchains to create smart contracts, which will be public and traceable in case any modifications are made. Besides, the changes made are irreversible, thereby making them secured and safe for all parties involved.
Imagine this as a distributed and decentralized ledger book, which cannot altered ever, but can be accessed by everyone.
If we believe Sudin, then in coming days, SBI will implement Artificial Intelligence (AI), Machine Learning (ML), Robotic Process Automation (RPA), predictive analytics etc in their regular banking operation, and will also collaborate with startups which are active in these niches.
Telangana has already set a benchmark by using blockchains for e-Governance. Now SBI has established a new benchmark by directly integrating blockchain in banking operations.
Can this lead to more widespread changes pertaining to usage of cryptocurrency (which is based on blockchain)? Do share your opinions by commenting right here!