The State Bank of India will be launching two blockchain production-ready beta solutions by the end of this year, they are seeking to deploy this for use in 27 major Indian banks of the ‘BankChain’ consortium.
This is another strong move by the bank, as this year, the bank became much larger by conducting a major merger.
The “State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.” Earlier on in the year there was a merger between the State Bank of India and five of their associate banks. This is the firrt large scale consolidation within the Indian Banking industry. This merger will see State Bank of India enter the top 50 global banks by market cap. With total assets amounting to over $460 billion
This is a significant development in the industry as the banking industry in general is slowly integrating blockchain technology for use. It would be interesting to watch how a major roll-out would play out and affect the corporation as well as the partners involved. The second aspect is their intention as a public sector bank in establishing the BankChain at such an early stage. The have already signaled their commitment to taking action, but actions weren’t expected so soon. The BankChain brings together a group of parties to participate in the nation’s first financial blockchain consortium where banks and tech companies can collaborate to bring about various use cases of the emerging technology. The consortium is now comprised of 27 member banks (public and private) including tech partners such as IBM, Intel and Microsoft.
They are looking to utilize the blockchain and implement it’s applications with their two initial rollouts for buzzworthy “smart contracts” and know your customer platform by next month, as stated by Sudin Baraokar, head of innovation for SBI.
“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 and smart contracts and the second is KYC. (Economic Times)
Outlining use-cases for smart contracts, Baraokar pointed to “simple” processes like non-disclosure agreements that can be automated, as opposed to manually signing forms. “A lot of internal processes can be [smart] contracted,” Baraokar revealed. “We do a lot of IT procurement, a lot of it can be implemented using blockchain.
A blockchain-powered KYC solution is listed among 10 “active projects” of the BankChain slate. Other notable projects include virtual currencies, cross border payments and peer-to-peer payments. SBI’s KYC blockchain solution will run on Intel’s modular Hyperledger Sawtooth platform.
The firm is seeking to delve into technology more to be more efficient and is doubling down on the tech investments they see to be great value add in the present and in the future.