Indian govt. owned State Bank of India (SBI) has taken the initiative to push a new initiative called Bank-Chain, India’s first Blockchain exploration consortium for banks. The new group was announced in Mumbai on 8th February 2017.
Bank-Chain will enable banks to explore, build and implement Blockchain solutions which can minimize fraud and maximize efficiency, security & transparency. Bank-Chain has been formed in collaboration with Primechain Technologies, a young Pune-based startup with a core focus on Blockchain technologies.
India’s largest bank assets SBI believes that it is essential for banks to collaborate and develop Blockchain solutions for the betterment of the financial sector.
Other banks that have shown an interest in collaborating with Bank-Chain are — Axis Bank, Central Bank of India, DCB Bank, Deutsche Bank, HDFC Bank, ICICI Bank, IDBI, Kotak Mahindra Bank and Saraswat Bank.
Banks can greatly benefit from using Blockchain technologies, as they can be used to remove a huge amount of paperwork and intermediaries. For example, a report from Santander InnoVentures claims that banks can slash infrastructure costs by $15-20 billion by 2022, by eliminating redundant activities.
Some of the core benefits of Blockchain technology for the banking sector include better client satisfaction through faster, more convenient and secure services, minimization of fraud, maximization of efficiency, security and transparency, streamlining paper work, accelerated information and money flows, greatly improved auditability, streamlining paperwork and greatly improve auditability