| Shinhan Bank Digital R&D Center head Jang Hyun-ki, center, holds an MOU with Ground X CEO Han Jae-sun, right, and Hexlant CEO Noh Jin-woo at the Ground X head office in Seoul, Tuesday. / Courtesy of Shinhan Bank |
By Jhoo Dong-chan
Shinhan Bank said Wednesday the bank inked an MOU with fintech firm Ground X and blockchain developer Hexlant to jointly develop blockchain security technology.
Blockchain technology has gained attention from the nation's commercial banks as a future tool to safely secure customers' personal information and their transaction records.
Under the deal, Shinhan and two tech firms will jointly develop the Private Key Management System for its banking system.
Ground X, Kakao's blockchain tech unit, is expected to provide a blockchain-based platform while Hexlant develops the infrastructure to feature an anti-cracking program for the platform.
The three parties are expected to test run the service by October.
“Blockchain technology has gained attention from the financial sector for its advantages, but financial firms have experienced difficulties in applying the technology to their system,” said a Shinhan Bank official.
“Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.”
In July, Shinhan Bank introduced a blockchain-powered loan application program, through which individuals will be able to submit related documents without in-person visits to the bank branches.
Shinhan Card, the bank's credit card affiliate, also obtained a related patent for a blockchain-based credit transaction process to better serve customers via a more secured and transparent system.