More and more banks are jumping on the blockchain bandwagon to initiate international transactions. The latest one to join the list is South Indian Bank which completed its first international transaction using the blockchain technology. The bank partnered with a currency exchange company in West Asia.
With the completion of this transaction, the South Indian Bank joined an elite group of banks and financial institutions which have used the blockchain technology to not only initiate the transaction but also to authenticate it digitally as well. The main advantage is that the transaction is authenticated as well as completed in real time. The company which helped the bank to execute the transaction is Forex Transaction. The transaction was initiated from UAE to India.
The main reason why this is a big news is because as more and more banks start using the blockchain technology, it would significantly reduce the cost of conducting overseas transactions. The banks can either pass on these savings to their customers, which would lead to a higher base of privileged customers who often conduct overseas transactions, or the banks could simply boost their bottom line with these savings. That is why either way, it would mean more profits for the banks. Moreover, since the blockchain technology is automated and can be used to complete the transaction at a lower cost as well as in real time, this would provide the banks with the added advantage of safety as well as speed. Also, the data loss in the transactions which are completed using blockchain technology is pretty limited as well.
Currently, the South Indian Bank has a tie-up with 4 different banks as well as 34 exchange companies across different countries. However, with the digital leap into blockchain technology, this would increase significantly as it can easily partner with the cryptocurrency platforms as well which would enable it to complete transactions quite quickly. Recently, the bank has also launched a mobile application which would allow its customers to conduct transactions online and would also allow the customers to lock the accounts in case, there is any problem with it.
One thing which is for sure is – the bank has surely taken a leap into the future by using the blockchain technology. If the bank is able to expand the use of blockchain in the future, this added convenience would increase the customer base of the bank all over the world as it would provide real-time international transactions to its customers.