Europe has been a prime destination for blockchain technology development as business and startups chose the region for their domicile since there exist a great talent and scope. When it comes to the potential applications of the technology, there has been numerous pilots and proofs-of-concept that are presently in motion.

With the technology creating the grounds in the European financial market, a new blockchain banking consortium has been created in Spain by Spanish wholesale bank Cecabank and the professional services company Grant Thornton, which will lay the groundwork of the actual use of this nascent technology in the financial sector.

The project aims to foster blockchain’s potential in the financial sector and presently comprises 33% of the Spanish banking sector. The members of the consortium will be the first financial institutions to share the responsibility for creating applications based on blockchain technology with a real impact on the banking business.

“The new consortium will provide us with a privileged position on the market, since we will be the first in effect to work with this technology, in a cross-sectoral and multidisciplinary environment. Employees of all our functional areas are not only going to gain an in-depth understanding of the technology, but also of all the new features that arise, which is indispensable, considering the momentum for constant progress maintained by blockchain,” Jaime Manzano, Head of Reporting, Operational Management and Banking Training Services at Cecabank, stated.

The blockchain consortium will be creating one of the first tools that is intended to increase efficiency in the prevention of money laundering processes of the member institutions. The solution that is developed will enable the digital identification of customers in a secure manner with the help of KYC (Know Your Customer) recognition system based on blockchain technology.

The solutions will be developed using blockchains such as Ethereum and Hyperledger, and the consortium also plans to commission other proof of concepts that will enable the streamlining of the usual banking processes.

The collaborative environment created by Cecabank and Grant Thornton will allow member institutions to test their latest discoveries, as well as those still in the proof of concept phase and, together with professionals from Grant Thornton, assess their future viability in each of their businesses.

“We are going to work to ensure that this consortium 'manufactures' the first usable blockchain banking applications, but also to turn it into a benchmark hub in Spain for the development of this technology, an epicenter which third-party institutions from various sectors can join to maximize their benefit. Our intention is to help Cecabank to implement the technologies necessary for its companies to be the first to make good use of the advantages that blockchain is expected to produce,” Luis Pastor, Grant Thornton Technology and Innovation Partner, said.

The participation of Grant Thornton will combine the presence of developers and lawyers with groundbreaking experience in this technology, together with experts from the financial, cybersecurity, innovation and consultancy fields that provide a cross-sectoral approach.