- Suning Bank tests out recording and updating of credit blacklist on a shared Blockchain.
- The Blockchain system will help to prevent credit fraud.
China: Suning Bank is trying out a syndicate blockchain that would enable the documentation and updating of a shared ledger of clients with poor credit scores among participating banks. Suning Bank belongs to Suning, the China-based retail giant
It was reported on Thursday by Sina Finance that Suning Bank has created a blockchain system that would enable the bank to record and update its list of users with bad credit scores on a blockchain-based distributed database in a bid to enable association with participating banks. The bank claimed that this would prevent credit fraud.
The Bank stated that on this system, every participating bank would become a node of the blockchain and any blacklist recorded or updated by Suning Bank would be accessible to these banks. The bank further indicated that the Node banks can also keep the list up to date with their individual data.
Suning Bank was created in 2017 by Suning and since then has grown into becoming one of the first online-to-offline Chinese commercial banks, founded by reputable private firms to give loans to both small-scale and medium enterprises.
Sharing customers’ information on credibility and credit trustworthiness seems to be the latest move by banks and financial institutions who have adopted the use of blockchain technology to manage their credit systems.
Prior to this development, a consortium blockchain was created by Minsheng and CITIC – 2 China-based commercial banks – last Sept. which stores transaction of domestic letters of credit using blockchain technology. Suning Bank was a participating member of the consortium. In its annual report last March, CITIC claimed that the blockchain system has been used to facilitate financial transactions which worth about $156 Mln in total.
Cryptona.co earlier reported that the People’s Bank of China (PBoC), on Tuesday 5th June unveiled a blockchain-based system that has the ability to digitizes paper cheques.