South Korean bank introduces blockchain to get rid of "human error"

The second largest commercial bank in South Korea, Shinhan Bank, has launched a project to introduce the blockchain into its internal processes in order to reduce the human factor leading to errors. The English edition of The Korea Times reported this on December 10.

Over the past eighteen months, the bank has sought to integrate both the blockchain and cryptocurrencies and recently a special staff training program aimed at expanding knowledge of the blockchain for various applications has been completed.

According to The Korea Times, on November 30, for the first time in South Korea, the bank introduced transactions on interest rate swaps using the blockchain.

Now, operations such as maintaining financial statements of the bank will be automated, which eliminates the likelihood of errors associated with the human factor, and increases the overall performance.

The publication quotes one of the leaders of the bank, who said:

"Prior to the blockchain-based process, there had been no standardized rules governing keeping and managing financial records, a reason why market participants had to rely on their own records which often times led to errors despite the cross-checking process requirement,"

"The new system helps remove such human errors and helps improve work efficiency through clearer, task-related communications rather than wasting time on correcting mistakes."

In November 2017, Shinhan Bank caused a stir, announcing that it was working on a cryptocurrency wallet. In August, the bank also signed an agreement with KT Corporation to provide blockchain-based financial services.