KEB Hana unveils biz models for blockchain technology

KEB Hana Bank CEO Ham Young-joo

By Jhoo Dong-chan

KEB Hana Bank has received patents for 46 business models that will help the lender adopt blockchain technology to its banking system, it said in press release Wednesday.

This is the outcome of the bank having introduced various business systems utilizing blockchain for emerging customer needs to take the lead in the nation's digital finance trend.

Of them, patent processing for successful business models such as the overseas purchase method, electronic contract system and digital asset service information system have been completed.

Reflecting a growing demand for direct overseas purchases, the bank has utilized blockchain technology to introduce a platform that matches domestic consumers and overseas travelers to help the former buy overseas products cheaply.

Domestic consumers have used local proxy shoppers via an internet community when they buy overseas products. The method has been very popular among customers who want to buy overseas products cheaply, but there is a risk of fraud as a proxy shopper might not send the product after receiving the money.

The KEB Hana overseas purchase method utilizes a blockchain ledger identifying each P2P transaction to prevent possible swindling, while automatically matching customers and overseas travelers based on desired prices and delivery time.

Each transaction between domestic customers and overseas travelers is made via an escrow bank account. An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for the two parties involved in a given transaction.

“There was hype in existing blockchain businesses to a certain degree,” said a KEB Hana Bank official. “Unlike existing blockchain business methods, KEB Hana introduced a number that help consumer spending in a practical manner.”