The Bank of China is working with Blockchain technology so as to process mortgage-related property valuations. But at the same time, the financial institution uses the technology to manage an increasing number of trade finance deals.
Bank of China Embraces Blockchain
Blockchain technology is spreading in every single industry and banks are taking the lead. And this is what the Bank of China Hong Kong (BOCHK) is doing. At the moment, it is handling almost all its real estate appraisals using blockchain technology.
According to reports from South China Morning Post, officials from the bank revealed on Monday that the bank wants to move towards Blockchain Technology. The lender processes 85 percent of mortgage-related property valuations using its own digital ledger.
Rocky Cheng Chung-ngam, General Manager of Information Technology at the bank, commented:
“In the past, banks and [real estate] appraisers had to exchange faxes and emails to produce and deliver physical certificates. Now the process can be done on the blockchain in seconds.”
The new BOCHK branch will be operating 24 hours a day including video-banking services that offer transactions and product applications.
“We decided to open a smart branch here, not only because it made operational sense but in the hope of interacting with other technology firms to develop more applicable forms of fintech,” kept on saying Mr Cheng.
BOCHK is the fifth bank in using blockchain technology for trade financing platforms.
The Hong Kong Monetary Authority has decided to set out seven initiatives that aim to bolster fintech technologies and blockchain technology. The decision comes after some critics pointed out that the country was lagging behind other competitors in the region.
Currently, 150 BOCHK staff are working on fintech areas. Compared to two years ago that represents an increase of a 50% in the total amount of employees in this sector.