State Bank of India (SBI), an Indian public sector banking and financial services company, is going to implement blockchain technology for the management of the mandatory Know Your Customer (KYC) details in its system, The Economic Times reported.
SBI is a founding member of BankChain – a blockchain consortium initiative by Indian banking majors, formed in collaboration with blockchain startup Primechain Technologies. The consortium has grown to 27 members in India and the Middle East.
Primechain Technologies will deliver an enterprise blockchain solution that runs on Hyperledger Sawtooth and Intel Software Guard Extensions (Intel SGX). Its patent pending ‘blockchain and smart contracts based self-managing KYC technology’ would be used for the solution.
Using the solution, the bank would be able to enhance the efficiency of financial transactions without the need to compromise data confidentiality and transaction security.
“The BankChain community welcomes Intel as the preferred technology advisor, to accelerate this innovation in India’s BFSI industry,” said Sudin Baraokar, Head – Innovation, State Bank of India. “By leveraging blockchain components such as Intel SGX and Hyperledger Sawtooth and Primechain’s expertise to build blockchains, we can realize emerging fintech services such as P2P lending, crowdfunding, and digital marketplaces that enable financial inclusion.”
“The key benefits of blockchain technology for banks include greatly improved security, reduced infrastructure cost, greater transparency and auditability, and real-time automated settlement,” Shinam Arora, co-founder of Primechain said.
SBI is interested to collaborate with other banks to arrive at blockchain use cases, prioritize them, and start building beta platforms.
Earlier in May, BankChain completed the work on its first blockchain project – Clear-Chain (c2) – is a permissioned blockchain for integrated and shared KYC (Know Your Customer) and AML/CFT (Anti-Money Laundering and Counter Terrorism Financing).
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