The latest blockchain news show a lot of advances of the distributed ledger technology in the financial world. Particularly, we can see a number of companies which are working to solve their long-standing issues. One of the latest updates comes from the Italian Banking Association, which recently built the Spunta Banca DLT app that is set to connect the entire banking system on a blockchain.
According to reports from Euromoney, the application will operate as a permissioned network on R3’s Corda enterprise platform. It will as such enable for the discrepancies between different ledgers for nostro and vostro accounts held by Italian banks for each other to be reconciled – which is traditionally, a very time-consuming process.
As per the article, the Italian Banking Association tested the system with even 18 banks in Q1 of 2020, and around 32 banks are using it now. We can see this system being used by big names, including Intesa Sanpaolo, UBI, UniCredit, Banca Mediolanum, Banca Monte dei Paschi di Siena, and the Italian operations of foreign banks such as BNP Paribas and Credit Agricole.
Around 22 more banks will join the Italian Banking Association (Associazione Bancaria Italiana) known as ABI this month, and by end of 2020, it is expected that all banks in Italy will join the project. The CEO of R3, David E. Rutter, says that this is “one of the most significant real-world digital transformations in the interbank financial services sector to date.”
For us, this is only a proof that cryptonews are influencing entire sectors and the financial sector is one of the first to adopt blockchain as a technology. The benefits are numerous, including:
- Benefits for customers: Insurers can serve their customers better via blockchain because the technology “shortens the time necessary to get what they need when they need it.”
- Benefits to financial services institutions: With greater efficiency and simplification, as well as collaboration within a company, and among a wide range of partners, the tech improves transparency.
As a result of all this, leveraging blockchain can offer a significant step forward in terms of productivity. According to experts, this is something which “financial services providers traditionally struggle to scale.”
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