IC Markets

Westpac and ANZ Conduct Successful Blockchain Trail with IBM

ANZ and WestpacTwo reputed Australian Banks Westpac and ANZ have recently announced they have successfully concluded a pivotal trial in collaboration with technology firm IBM. In this trial, blockchain technology was used for digitalisation of bank guarantee process in real estate leasing transactions.

The banks have used the sophisticated Distributed Ledger Technology (DLT) in the process of bank guarantee in commercial property leasing which at the moment follows a lengthy paper-based system. Both these rival banks have come together to bid for developing proof of concept for technology and encourage the banking industry for exploring its potential applications.

Under this blockchain, all digital assets and other related transactions are tracked with superior accuracy thereby leading to improved trust and agreement among the participants. According to ANZ, blockchain usage can play an important role to get rid of fraud and improve the overall efficiency.

Nigel Dobson who is the General Manager of ANZ has said that while some banks issue documents as required, it is a sort of challenge for the landlords as well as tenants for ensuring the hard copies are adequately verified and handed securely. He further said that more often than not, such kind of documents have been found to be fraudulent.

The blockchain trial involved IBM’s Hyperledger Fabric V1.0 and shopping centre operator Scentre Group. To maintain accurate transaction records, a digital ledger has been developed between the participants. Mark Bloom who is the CFO of Scentre said that it is a tedious work to track the manual guarantees because there were 11500 retailers operational between New Zealand and Australia.

A joint white paper has been published by these three companies where they note that the trial showcased the advantages of shifting to digital format. In addition to this, it would enhance the overall efficiencies for all the concerned parties. However, they have pointed out that the current inefficient processes can be replaced only when all the stakeholders work close to building solutions.

Andrew McDonald who is the General Manager of Corporate and Institutional Banking at Westpac made the following statement:

This is about removing the cost of fraud, error, and operational risk that will continue as long as bank guarantees remain paper-based and manually issued. Next steps involve encouraging all industry players to adopt this technology so we can better protect and save money for our customers. Beyond that, there is no reason why this couldn’t be applied across other industries.

The three companies have stated that bank guarantee trail was a part of an initiative for building solutions for the entire banking industry. They have issued an invitation letter to other firms and organisations to participate in a planned larger pilot.

Steven Rudford

Steven Rudford

Hello, my name is Steven Rudford. Welcome to Top10FX.net. Follow my website for the most trustworthy Forex broker reviews and last minute financial trading news.

IC Markets

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