The State Bank of India (SBI) has announced that it is due to implement Blockchain technology in the management of Know Your Customer (KYC) protocols. The Indian bank has partnered with a Blockchain company to develop the enterprise solution that employs smart contracts to self-manage KYC protocols.

The Blockchain-based platform will provide SBI an effective solution to boost the efficiency of transactions without compromising either the deals’ security or the confidentiality of its users. Because of its adoption of Blockchain, the bank has joined the growing number of financial institutions which adopted the technology in their operations to cut costs and improve customer services.

Potential benefits of Blockchain for banks

In a press statement as of early November 2017, the co-founder of Primechain Technologies cited some major benefits of Blockchain in the banking industry, including improved transparency, lower infrastructure cost and better transaction security.

“The key benefits of Blockchain technology for banks include greatly improved security, reduced infrastructure cost, greater transparency, auditability and real-time automated settlement.”

SBI’s sustained efforts on Blockchain

SBI has long been a supporter of Blockchain technology and has participated with others in advancing projects focusing on the technology. The bank was one of the founding members of the consortium called BankChain, which focuses on the research and development of Blockchain technology solutions for the banking sector. Primechain Technologies is also a partner in the consortium.

Several reports also claimed that SBI is planning to partner with other banks for the creation of Blockchain platforms aimed at improving the efficiency of existing bank services.

In a statement, the head of innovation also announced the selection of Intel as the preferred technology advisor of the consortium to facilitate Blockchain innovation in India’s banking, financial services and insurance (BFSI) industry.

“The BankChain community welcomes Intel as the preferred technology advisor, to accelerate this innovation in India’s BFSI industry.”