Thailand Bank and IBM just finished a Blockchain pilot test aimed at simplifying and securing the contract management process.
The Bank of Ayudha in Thailand has finished a Blockchain pilot, tapping one of the biggest names in the technology industry: IBM. The test aims to simplify the contract management process with the help of distributed ledger technology (DLT).
Improved Related Party Transaction (RPT)
The bank is currently the fifth largest in Thailand when it comes to assets, deposits, and loans. They are providing a wide scope of financial services, including credit cards, insurance, securities trading, as well as wealth and asset management.
They do thousands of agreements and transactions day to day so it is fitting for the bank to improve its process efficiency through a modern and faster approach. After months of collaboration, both the bank and IBM are satisfied with the results. They agreed that RPT capability has improved in terms of transparency, data security, and general operations.
In a press release, Voranuch Dejakaisaya, the bank’s chief information and operations officer said,
“We started conducting test runs of the pilot project last year and the results have been satisfactory. The goal is to digitize the paperwork process, store document contents with authentication and approval information in the Blockchain-based database, and expand this service platform across the bank and our subsidiaries.”
Fewer errors and more security
Because of this Blockchain pilot, the bank has tested the potential benefits of the technology in furthering back-office efficiency. They found that the permanence of the encryption ensures “quick sharing of necessary information by transaction participants.” Aside from this, they also recognize how Blockchain technology can be a big help in improving transparency by giving control to the auditing and supervising parties and allowing quick access to information.
Mrs. Parnsiree Amatayakul, Managing Director, IBM Thailand Co., Ltd. added,
“The success of [Bank of Ayudha’s] Blockchain-based contract management pilot project demonstrates the high impact the technology can have on the financial industry. IBM is honored to collaborate with [the Bank of Ayudha]to bring efficiency and transparency to contract management process, and to together reach this new milestone of financial innovation in Thailand.”
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Author: Lisa Froelings