Shinhan Bank Monday unveiled a plan to introduce blockchain technology in verifying documents necessary for loans.

This is the first time that a Korean bank has adopted blockchain technology in the lending process. So far, banks have utilized the scraping technology in the process of executing loans without face-to-face contact to confirm customers’ employment and income documents. However, separate document issuance has been necessary because it has been impossible to confirm qualifications of those belonging to specific associations, groups and cooperatives.

The blockchain-based qualification verification system, developed by Shinhan Bank, enables affiliated organizations and banks to use blockchain to register passwords so they can inquire into information about customers fast.

Shinhan Bank applied the system to “Doctor Loan” it unveiled in partnership with the Korean Hospital Doctors Association for the first time. The system has made it possible to verify qualifications in real time, a far cry from 2 to 3 days so far.

“This system is applicable regardless of the size of affiliated organizations because of no restrictions on applicable products and lower adoption costs,” said a Shinhan Bank official, adding that “we plan to apply the system to diverse products conducted without face-to-face contact in the future.” /yjk@decenter.kr

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