One of Thailand’s largest commercial banks is looking to digitize some of its financial contracts through a block-based solution that has been developed in conjunction with IBM.
Recently, the Kasikorn Bank – or simply KBank – has revealed that it wants to move away from the typical physical documents to start certifying its operations in digital form. In November 2016 the Reuters portal reported that the entity was seeking to reduce the operational costs associated with maintaining this area with a view to implementing an effective solution at a time to be determined in 2017.
It was obvious that the process would not happen overnight, since the plan is to digitize 35% of the total amount of contracts generated by the end of next year. The company announced that in that time frame it expects to issue up to $ 9 billion in guarantee contracts and is still working exhaustively on it.
Of this amount, 5% will be destined to the platform, which has been built with Hyperledger Fabric, a framework based on the chain of blocks and one of the projects of Hyperledger organized by The Linux Foundation. The tool was designed to meet the increased issuance of Guarantee Letters, and by providing a unique and shared data structure, KBank hopes that the solution will help build partnerships with other banks in the region.
Pipit Aneaknithi, president of the banking institution, said in a statement:
“Blockchain reduces the barriers of conventional transactions and can help improve business processes in the finance industry. We are working with IBM to implement solutions based on this technology, in order to better define and articulate our leadership in the market. Only in this way is it possible to redefine the way companies in the region operate and grow. “
It should be noted that the solution has already been tested in collaboration with the Central Bank of Thailand in an attempt to verify to what extent block technology can be used to certify the veracity of documents. In a statement issued in April last year, officials at Kasikorn Bank revealed their desire to add new technologies to their business lines, including the block chain. At that time they argued:
“Blockchain represents technology that offers great benefits, such as reducing costs and increasing efficiency in the activities associated with cross-border liquidation.”
What is striking is that at that time the announcement made a radical change in Thailand, thanks to the fact that in 2014 the uncertainty of a Bitcoin ban in the country led to multiple local exchange offices to freeze operations, although finally the government opted for Do not prohibit digital coins; But with the warning to local consumers that their use was subject to their responsibility.
Kasikorn Bank provides personal and commercial banking services to its clients throughout Thailand, with branch offices in Los Angeles, Hong Kong, Cayman Islands and Shenzhen, and offices in Shanghai, Beijing and Kunming.
Eduardo Gómez is a Venezuelan freelance writer and Information’s Technology Professional. He discovered Bitcoin in 2012 and has been drawn to it ever since. He also works as a Customer Support Agent at the San Francisco-based Bitcoin startup Purse.io