Korean Fintech Upgraded With Blockchain
According to an article published by The Korea Times, July 28th, 2019, blockchain technologies are offering numerable positives financial companies in South Korea, one of the world’s most forward-thinking blockchain jurisdictions.
Often, it is easier for a company to retain existing customers than attract new ones, which is why reward programs are a great way to inspire brand loyalty, an area in which blockchain and cryptocurrencies can become extremely valuable tools for enterprises.
This trend can be seen in KEB Hana Bank, who is actively strengthening ties with ICT firms to boost their Global Loyalty Network (GLN), a platform powered by blockchain tech.
Blockchain allows rewards, bonus points, mileage, gift cards and the like, to all be recorded and secured on a ledger that makes it accessible and always online, regardless of the physical location of the user.
For a long time, the typical business model of financial service firms was to generate revenue through interest – either from margin trades or loans.
Now thanks to blockchain, enterprises in the sector will be able to pivot in a new direction to provide more value for their customers, driving more business.
Tokens over KRW
Another notable blockchain project from KB Financial Group is called MONA Chain, which is being supported by the efforts of LG Science Park.
LG Science Park is an IT subsidiary of LG Group and combines blockchain with AI. The goal of this project is to allow KB Kookmin Bank, a subsidiary of KB, to process payments at LG’s park by using tokens for goods and services sold, rather than cash, card, or popular mobile payments like KakaoPay.
A KB official said:
“The joint project will boost use and management of digital currency as well as digital certification, an essential process for us and LG CNS to establish user confidence required for a stable, long-term business expansion,”
Instead of rebranded cards or QR codes, a new technology called Decentralized Identifiers (DIDs) are being used to recognize an account, and credit/debit tokens accordingly.
Blockchains and banks have slowly been getting along over the years, and not just in Korea. Just recently Union Bank in the Philippines released their own crypto, and even JP Morgan’s crypto begins user testing this year.