Shinhan Bank looking to improve security through blockchain technology

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Shinhan Bank has invested a great deal of effort in improving the security of its infrastructure through the use of blockchain technology. On August 14, the financial institution took another step forward in providing greater security for clients, announcing that they had partnered with two fintech companies to build a new security system using this technology.

Shinhan Bank has been active in using blockchain technology to help the overall customer experience. Early in August, the financial institution announced that they would be offering peer to peer (P2P) stock lending using this technology as the foundation for their platform.

In late May, they had already announced that they were launching a new blockchain-based platform that was meant to improve the security and overall expediency and efficiency of their lending process.. Both have appeared to be resounding successes for South Korea’s oldest bank.

Now, Shinhan bank is employing this tech knowledge to help assist in ensuring the overall security of customers’ personal information as well as their transaction records. By combining with GroundX, the blockchain tech unit for Kakao, and Hexlant they are looking to create a platform that will offer an anti-cracking program as well.

The three companies look to develop a private key management system within Shinhan’s platform. GroundX will provide the blockchain-based platform that will be the foundation of the system, with Hexlant specifically developing a program that will function as an anti-cracking program. It is expected that testing on the platform will begin as early as October.

“Blockchain technology has gained attention from the financial sector for its advantages, but financial firms have experienced difficulties in applying the technology to their system,” Explained an official for Shinhan Bank,The hope is that “Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.”

The choice to partner with GroundX appears to be a wise one. The Kakao subsidiary launched its own blockchain in June that has been used across a wide variety of Kakao’s services. The platform, known as Klatyn, has been found to work 150 times faster than Ethereum and has been used to help develop its own cryptocurrency, called klay.

Hexlant is the third member of this partnership. They have developed their own blockchain as well. The company was first established in 2018 and is the vision of a group of former engineers at Samsung. This blockchain laboratory provides 11 main net node solution and has created a smart contract business as well as provides a cryptocurrency wallet and platform token bank.