Shinhan Financial Group (Shinhan Bank) has announced the launch of a new blockchain-powered loan system, South Korean media outlet Yonhap reported on May 27. The new system uses blockchain technology to verify proof documents submitted by borrowers during “non-face-to-face” lending.
Yonhap noted that this is the first time blockchain technology has been used for this type of project in Korea.
According to the report, the new system is designed to reduce the time required for verifying submitted documents and is expected to simplify the loan process for those who choose who seek online lending opportunities. It’s part of Shinhan Bank’s broader effort to improve remote client access to bank services and expand product access.
The bank elected to first apply the system to ‘Shinhan Doctors’ products. As Yonhap reports, that application resulted in immediate reductions in confirmation times: “The process of confirming that the customer is a regular member of the hospital doctor's council has been shortened in real time in the second or third day.”
An official from Shinhan Bank highlighted the expected benefits of the new system:
“The introduction of the block chain qualification system will contribute to the activation of non-face-to-face products.
We will make efforts to increase customer convenience and expand accessibility by launching various non-face-to-face products."