Out of China’s 26 A-share listed banks, almost half launched blockchain technology in 2017. This is according to the 2017 performance reports launched by the respective banks. According to the reports, a number of joint-stock banks, state-owned banks as well as city commercial banks recorded some growth in their Fintech business and electronic banking.
According to CEBNet, China’s main source of banking industry news, 12 of the 26 banks have filed their annual reports, which mane of them indicated the use of blockchain for various applications in the last year.
Last year, many banks and other institutions recognized blockchain as a good solution to several problems in various fields. Several local banks also made attempts towards adopting blockchain applications and innovation.
Some of the Chinese banks that embraced blockchain in 2017 include Bank of China, Agriculture Bank of China and China Construction Bank. There were also 3 city–level Banks and six joint-stock banks. Some of the applications that the banks have applied blockchain include ID authentication processes, issue of cross-border loans and invoices.
For instance, in its annual filing, the Agriculture Bank of China indicated that it has developed a decentralized network that is being used to issue unsecured loans for e-commerce merchants in agriculture and that the system offers an automatic process of issuing loans.
China Construction Bank also developed a blockchain platform to be used in cross-border and cross-bank loan issuance to small and medium businesses. The bank announced that its system has already processed $251 million.
The Bank of China intends to start using blockchain in trade financing. The bank has already uses biometric authentication technology applications like finger veins, fingerprints as well as voiceprint authentication using the new technology. Bank of China also announced that it has successfully tested a distributed IT infrastructure, which will be used in its branches and will be used for development of blockchain-based digital wallet.
The adoption of blockchain technology by several banks comes after the banking regulator indicated that using the technology offers a lot of benefits to the financial sector. The regulator especially pointed out that the technology increases efficiency in the process of issuing loans.
