Kasikornbank Thailand and IBM aim to reduce complexity in corporate credit with Blockchain
Via IBM Press Center
Nov 9, 2016
Bangkok, Thailand - 09 Nov 2016: IBM (NYSE: IBM) today announced it is working with one of Thailand’s largest banks, Kasikornbank Public Company Limited (KBank), to build a new blockchain network designed to help simplify procedures for the bank's corporate credit business. Using Bluemix, IBM’s cloud platform, the bank will create the foundation for a blockchain business network which will allow credit requestors, credit beneficiaries and KBank to fast-track traditionally lengthy procedures such as Letters of Guarantee for clients.
Banks require better visibility on the number of Letters of Guarantee processed and the status of each. Currently these take days to complete. Through tapping the transparency of blockchain, KBank is looking to expedite the application process, enrich the customer experience, and make the process more cost-effective for both clients and the bank.
Blockchain is rapidly fueling a new generation of accountable, transparent transactions which can help streamline business processes across a number of industries, including banking, financial services, shipping and logistics.
"Kasikornbank Business Technology Group(KBTG), a K Company Group with IT expertise, recognizes the importance of blockchain technology and has built a model for an original document certification service suitable for both corporate and retail customers. Placing emphasis on data storage security and authorization to access the data for related parties via a private blockchain, the new service helps reduce operational procedures of organizations and related parties. The blockchain technology is able to verify data with transparency, security and auditability,” said Mr. Somkid Jiranuntarat, vice chairman of KBTG. “The new technology is used for an original document certification service as part of the bank’s pilot project using the blockchain infrastructure built on the Hyperledger Fabric. It has been designed for applications in diverse organizations with a common standard, swift service and the unique features of private blockchain.”
Built in the Singapore location of IBM’s Bluemix Garage network, the project uses the IBM Blockchain service on Bluemix. With eight locations globally, IBM Bluemix Garages serve as a hub where developers, designers and product managers can come together to build on Bluemix.
With the Bluemix Garage team, KBank is designing a blockchain network using an agile and lean startup approach. Blockchain will provide a system that collects customer information and associated credit application data in the cloud to improve trust in the network, replacing the manual process of posting records and validating applications. As security is a key priority for the bank, it will begin testing the high-security business network delivered via Bluemix, designed specifically for organizations that handle sensitive data with its additional levels of security that help protect against unauthorized access and tampering.
“Blockchain and cloud have the potential to play a critical role in improving business transactions. This project demonstrates considerable benefits for the financial services sector and beyond,” said Parnsiree Amatayakul, managing director of IBM Thailand. “KBank is a leading financial institution known for continuously adopting advanced technologies to enhance customer experience. We are delighted to continue to support KBank’s important initiatives in blockchain and the significant value these projects will bring to the bank.”
KBank provides commercial banking services including personal and commercial banking, international trade, and investment banking services to its customers throughout Thailand. The Bank has foreign branches in Los Angeles, Hong Kong, Cayman Islands, and Shenzhen, and representative offices in Shanghai, Beijing, and Kunming.
IBM is rapidly expanding its blockchain consulting services and capabilities, and actively working with clients to understand what it takes to make blockchain ready for business. Through its open source contributions to the Hyperledger fabric and its blockchain services on IBM Bluemix, developers can develop applications rapidly and easily while testing security, availability, and performance of a permissioned blockchain network.
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