ICICI Bank, India’s largest private bank, will focus on Blockchain technology to make its services more secure and create a more robust experience for its customers..
ICICI Bank, India’s largest private bank, will use Blockchain technology to make its services more secure. According to the Indian newspaper Mint, ICICI Bank, headquartered in Mumbai, India, will create a new position with the title Chief Technology and Digital Officer (CTDO) for this purpose.
The CTDO will report directly to Chanda Kochhar, Managing Director and CEO of ICICI Bank. The CTDO will be in charge of the bank’s newly formed Technology and Digital Group. The creation of this new Technology and Digital Group will enable the bank to expand its digital reach and technological offerings.
Banks have the need for complex clearing and settlement systems and this is where Blockchain can prove to be useful.
ICICI Bank will specifically focus on Blockchain systems to create a more robust experience for its customers. ICICI hopes to reduce duplication of access to data. The bank is also hoping that the Blockchain-based system will be more scalable and reduce costs.
The Bank’s CEO Chanda Kochhar says,
“For example, it is not just limited to the banking part. If we look at trade or exports and imports - can we start linking right from the point where exports are made and the export certificates are received and then against that the banks give a confirmation and another set of banks give funding? The ports give the confirmation of the physical goods having moved. Having that whole thing sit on an open ledger helps make things that much more transparent and therefore reduces fraud; it reduces mistakes of data entry and two banks giving different information.”
ICICI looks at fintech opps
ICICI Bank has decided that it will adopt a mixed approach. While it will be building some services on its own, the bank might consider partnerships in other areas. The Mint quotes Chanda Kochhar as saying,
“While these specific and niche players (referring to fintech and mobile wallet companies) exist, banks can actually do all of this within the bank itself, provided they keep abreast in terms of technology and offer advanced solutions for the same.”
Beyond customer experience
Ever since Bitcoin came to the foreground, the technology behind Bitcoin - Blockchain, has been of considerable interest to the banking sector. As for ICICI Bank, they are looking for creating systems that can not only be used for enhancing customer experience but can also be used for the day-to-day administration. Employees will be able to use offerings of the new digital group to apply for leave, finish pending jobs and look up numbers and personal information, while on the move.
Cointelegraph reached out to ICICI Bank for comment but they did not respond to our questions on the adoption of Blockchain technology by the bank.