Union bank of the Philippines started to implement Blockchain technology on banks internal processes to lower operational costs.
“In operations, we already launched several internal blockchain applications” Union Bank of the Philippines Chief Executive Officer (CEO) Edwin Bautista told reporters during the Philippine Investment Forum held in Taguig City on 8 August 2018. “The goal is to put blockchain as much as we can in the internal process to reduce our costs. At the same time, it also helps us learn the technology that we can now apply for other services,” the chief executive added.
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Blockchain is the technology behind Bitcoin. It is a public ledger system where transactions are recorded in a block. It is typically managed by a peer-to-peer network that collectively adhering to certain protocol for inter-node communication, validating each transaction and locked them in a “block.” Once recorded, the data can no longer be edited nor tampered.
According to Bautista, UnionBank started to adopt the technology in its internal processes by putting its general circulars and operating manuals into the blockchain, enabling the more efficient distribution of the materials to all their bank employees. Aside from that, the Union Bank has also implemented a clearing system on a blackchain technology, connecting their local branches all over the country. Dubbed as Project i2i, the clearing system streamlines bank processes like inter-bank funds transfer, financial and accounting reports, remittance, know-your-customer process and branch locating, among others.
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Union Bank is one of the early adaptors of Blockchain technology in the Philippines, and now enjoying the benefits not only on their internal processes but also on their cross-border banking transactions. Remembering that early this year, Union Bank has joined the American multinational financial service corporation VISA to offer the country’s first direct Blockchain payment system for business called Visa B2B connect.
Through Visa B2B connect, the traditional 3 to 5 working days fund transfer transaction can now be done in real time. This innovative technology also eliminates friction for cross-border transactions and is far cheaper compare to the old banking systems.
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