IBM is launching a blockchain-powered platform, which aims to make bank guarantee process much more efficient and streamlined.
IBM has shared a press release with Cointelegraph in which they have stated that they are launching this piot in partnership with four Australian financial services companies which are the Australia and New Zealand Banking Group Limited, Commonwealth Bank, real estate firm Scentre Group, and Australian bank Westpac.
The pilot is being called Lygon, and its main task will be to digitize the issuance and management of bank guarantees in the retail property lease sector. There are many advantages to digitizing this process and the press release has outlined few of them.
Firstly, if the process is managed on a blockchain, chances of fraud are greatly reduced as it is next to impossible to tamper with the blockchain. Secondly, it reduces the scope for human error as the entire process will be done digitally. Additionally, blockchain increases transparency and security in the system.
This is once again a big win for blockchain which has traditionally been disregarded by financial institutions. The technology is finding greater acceptance now from banks and other financial institutions. Didier Van Not, general manager of Corporate and Institutional Banking at Westpac, said:
“We have created a blockchain-based platform to digitize the bank guarantee ecosystem. The pilot will test live transactions using distributed ledger to prove the technology is commercially viable. It is a great example of digital transformation that refines the customer experience.”
IBM is doing some great work with blockchain technology and it is being integrated in some major institutions. It won’t be long until this technology becomes an arterial technology for most industries.