With increasing demand for blockchain technology, more and more banks are employing blockchain-based systems meant to improve customer service and reduce costs. The State Bank of India, also known as the SBI, is the latest to join the race, as it will soon implement blockchain technology to manage Know Your Customer (KYC) protocols.
No compromise of user confidentiality
The platform, created in partnership with Primechain Technologies, will offer the bank an enterprise solution using smart contracts to self-manage KYC protocols. This will help the SBI make transactions more efficient, without needing to compromise either transaction security or the confidentiality of its users.
The SBI has been a fan of blockchain technology for a long time. It is a founding member of BankChain, which is a consortium run by the biggest Indian banks in collaboration with Primechain Technologies, a blockchain startup. So far, 27 entities from India and the Middle East have joined the organization, which researches and develops blockchain technology for banking purposes.
In a recent press statement made by the co-founder of Primechain, it was noted that:
The key benefits of blockchain technology for banks include greatly improved security, reduced infrastructure cost, greater transparency, auditability, and real-time automated settlement.
Additionally, the head of innovation at the SBI stated:
The BankChain community welcomes Intel as the preferred technology advisor, to accelerate this innovation in India’s BFSI industry.
Reports indicate that the SBI is looking forward to collaborating with other banks in order to build blockchain platforms that will improve and make existing banking services more efficient.