South Korea's Shinhan Bank Turns to Blockchain to Speed Up Loan Issuance

Shinhan, one of the oldest and largest banks in South Korea, is using blockchain technology to speed up the approval process for loan products. 

May 28, 2019 at 10:00 a.m. UTC
Updated Sep 13, 2021 at 9:14 a.m. UTC

Shinhan, one of the oldest and largest banks in South Korea, is using blockchain technology to speed up the approval process for loan products.

Specifically, the bank will use a blockchain platform to verify the items of proof required for credit lending, such as qualification or certification documents, Yonhap reported Monday.

Until now, customers had to submit these documents directly to the bank to undergo time-consuming manual verification of their authenticity, according to the report.

With the blockchain-based verification system, Shinhan is expecting to process these documents more quickly and at a lower cost.

The bank has reportedly already applied the technology to its "Shinhan Doctors" loan product, reducing the time taken to confirm whether a customer is a regular member of the Hospital Doctors' Council from two to three days to “real time.”

A Shinhan Bank official was quoted as saying in the report that the blockchain system is expected to boost the number of "non-face-to-face" loan products processed and that the bank plans to expand the system to more products.

Founded in 1897, Shinhan has been exploring blockchain technology for some time now. Last year, it trialed cross-border remittances for business customers using Ripple’s blockchain technology. As far as back in 2015, Shinhan invested around $427,000 in blockchain remittance startup Streami.

Editor's note: This article is based on a report translated from Korean.

Shinhan Bank image via Shutterstock 

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Circle Asks US Fed Not to Step on Its Toes by Launching a Digital Dollar

The public is already served well by private-sector tokens, the USDC stablecoin issuer said in a comment letter to the central bank.

The public is already served well by private-sector tokens, the USDC stablecoin issuer said in a comment letter to the central bank.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto News Roundup for May 25, 2022

With bitcoin seemingly unable to break above the $30,000 threshold, plus a look at the suspects in the cast of the UST collapse, CoinDesk’s "Markets Daily" is back with the latest news roundup.

With bitcoin seemingly unable to break above the $30,000 threshold, plus a look at the suspects in the cast of the UST collapse, CoinDesk’s "Markets Daily" is back with the latest news roundup.

CoinDesk - Unknown
3
CoinDesk - Unknown
ApeCoin

CoinDesk - Unknown
4
CoinDesk - Unknown
Proof-of-Work vs. Proof-of-Stake: What Is the Difference?

Proof-of-work (PoW) and proof-of-stake (PoS) are two different methods to validate cryptocurrency transactions.

Proof-of-work (PoW) and proof-of-stake (PoS) are two different methods to validate cryptocurrency transactions.

CoinDesk - Unknown