Philippines’ UnionBank To “Blockchainize” Internal Operations

BTC Wires: The Union Bank of the Philippines, Inc. has decided to embrace blockchain in newer ways, at least in its internal operations, to make sure it can reduce costs and explore the potential of the technology further. President and CEO of the Bank, Edwin R.Bautista stated a few days back that this bank, controlled mainly by the Aboitiz group, has launched quite a few blockchain applications internally. At the Philippines Investment Forum held in the Taguig City recently, he told journalists that their aim was to make more and more use of blockchain in the internal operations and processes of the company, and that they’ve already launched some internal blockchain applications to that end.

Blockchain is an emerging technology involving a distributed data ledger that connect a large network of bodies, people and companies to store and access data in the form of ‘blocks’. With regular updates in technology features, security, efficiency etc, this technology helps make data management an easier process. It has quickly become the way to go for many industries looking to harness the power of blockchain to make their operations more decentralised, cost-effective, transparent and quick.

Bautista went on to say that the bank plans to supposedly “blockchainize” as many internal operations as possible to cut costs of operations. He noted that they were also trying to understand how they could apply the technology to make customer servicing smoother.

In an earlier response to reporters, he had said that many of its 700+ internal operations were appropriate for blockchain adoption, some of these being cheque clearance, opening accounts and transferring funds.

UnionBank had began adopting blockchain in internal processes by using blockchain for its operating manuals and general circulars, making sure its materials are distributed among bank employees more efficiently.

Besides, in the last quarter, the bank had started a clearing system to link rural banks via blockchain. Known as Project i2i, this initiative makes it possible to streamline inter-bank transfers of funds, remittance, KYC processes and bank locating services.

UnionBank has bagged a net income of about P1.78 bn in Quarter 2, falling by 17.2% year-over-year. The Bank is also planning to offer around 200 million common shares in September through a stock rights offering. This is being done to fund further expansion that the bank is planning.