The largest bank in South Korea has recently joined the Hedera Governing Council. The bank plans to leverage its new access to vast resources from Hedera to improve its business processes.
Shinhan Bank released an announcement on April 14, stating that it was the Hedera Governing Council’s newest member. The move will help this bank expand its business processes related to digital transformation. The Hedera platform offers an enterprise-grade blockchain that enables the fast processing of transactions.
High demand for efficient financial services
In the announcement, the bank recognized the suitability of the public distributed ledger from Hedera in Fintech firms. The ledger offers speed, security, and transparency. It also offers efficiency to financial service providers. After joining this council, the bank will integrate Hedera’s ledger into their systems for improved efficiency.
In a report released in 2020, Shinhan bank ranked as the 61st largest bank in the world with total assets worth $478.5 billion. This bank has been working with distributed ledger systems in functions such as interest rate swaps, loan policies, pension funds, etc.
In January 2021, this bank collaborated with the Korea Digital Asset Custody (KDAC), a platform for organizations that offer digital asset trust services. The bank has also been involved in the development of Central Bank Digital Currencies (CBDCs).
Shinhan Bank and Digital Transformation
The Shinhan Bank officials spoke during the announcement and stated that they were pleased with the new partnership presenting a way for them to achieve digital transformation. According to the officials, their clients and partners wanted the digital transformation to find a way to increase the security and efficiency of financial systems.
By joining the Hedera Governing Council, this bank will manage to work with international bodies in different industries to develop real-time solutions that will shape the future of financial systems and services. This bank is hopeful that financial services innovation will progress if they use the public distributed ledger from Hedera.
The CEO and the co-founder of Hedera, Mance Harmon, said that there was an increased interest in Distributed Ledger Technology (DLT) from financial organizations and government organizations worldwide. The increased interest was attributed to a heightened need for security and efficiency in retail and wholesale services.
Hedera has increased its global expansion over the recent months. The bank recently accepted Electricite de France to join the council, while Standard Bank Group became the first African bank to join the council.