Thai Bank KBank Launches Blockchain-Based Letter of Guarantee Network
Major Thai bank Kasikornbank Public Co. Ltd. (KBank) has partnered with technology firm IBM in the launching of a new enterprise Letter of Guarantee network that is based on the IBM Blockchain as of early August.
The aim of the network is to improve the customer experience, strengthen security, and reduce the cost for the bank’s customers and itself.
According to KBank president Pipit Aneaknithi, the use of IBM’s technology is aimed at creating highly secure networks of document filing and retrieval.
“Blockchain technology is applied to create highly secure networks of document filing and retrieval. As Thailand’s largest issuer of Letters of Guarantee, KBank is working with IBM to implement this innovative technology to further define and articulate our leadership in this market.”
The enterprise network was built on the Hyperledger Fabric, a Blockchain framework, and one of the Hyperledger projects hosted by The Linux Foundation. The network, which was already tested in the Bank of Thailand’s regulatory sandbox, was designed to be scaled up for the anticipated increase in Letters of Guarantee issuance through electronic channels.
According to IBM Thailand managing director Parnsiree Amatayakul, the Blockchain lessens conventional transaction barriers and can facilitate business processes in the financial services sector and beyond.
KBank has also partnered with other companies in advancing the use of the Enterprise Letter of Guarantee on Blockchain service. The partner firms include the Metropolitan Electricity Authority, the Provincial Electricity Authority, PTT Global Chemical PLC, and PTT Polymer Marketing Co. Ltd.
KBank offers banking services like personal and commercial banking, international trade, and investment banking customers to its customers across Thailand. The bank is also operating foreign branches in Los Angeles, California, Hong Kong, Cayman Islands, and Shenzhen, China.