Few days back we posted an analysis “Financial institutions could save $27 billion annually by 2030” based on the blockchain reports published by industry leaders IHS and Juniper analysis. Now, UnionBank of Philippines has started using blockchain technology to reduce costs of operation.
Blockchain technology has made its mark across several sectors, but the most impact it has had has been on the banking and finance sector. Banks across the world are slowly opening up to blockchain integration in some form. The latest name to join the blockchain bandwagon in the banking sector is that of the UnionBank of the Philippines (UBP), which will adopt blockchain technology in their internal processes to help reduce costs of operation.
The bank has been testing with blockchain-based tech for quite some time now. This is their latest application of this technology. The official announcement came from UnionBank President and Chief Executive Officer Edwin R. Bautista at the Philippine Investment Forum 2018.
The bank plans to move as many as 700 of their internal processes over the blockchain network. These functions include some key banking features such as opening of an account, transfer of funds and clearance of cheques among others.
Bautista talked about the fact that they are looking forward to ‘blockchainizing’ the banking system and working on getting more processes to move on the blockchain network. The management believes that it would help the bank reduce their costs as well as automate certain tasks.
Another reason why the UnionBank of the Philippines has been pushing towards implementing more blockchain solutions is probably because of the fact that they are gearing up to launch an IPO in September. Over 200 Million shares are expected to be offered over the Philippines Stock Exchange. Hence, the company wants to ensure that they have a technological edge over their competitors.
Apart from this ‘blockchainization’ drive, the UBP has also been working towards setting up other technological innovations, such as their recent deal with Visa, where a cross-border bank-to-bank payments system was set up, which was aimed at innovating the banking services for SME (Small and Medium Enterprises) customers.
