KBank will also invite commercial banks and other organisations to use the technology, said Somkid Jiranuntarat, vice chairman of Kasikorn Business Technology Group (KBTG), the IT subsidiary of KBank.
In the initial stage, a system called OriginalCert API will be used to certify letters of guarantee (LG), which will simplify and speed up the LG issuance process for customers. Relevant parties will be authorised to access and use electronic LGs in a swift, accurate and secure manner.
The OrginalCert API service can also be used by other participating commercial banks and organisations.
Somkid said the KBank would soft-launch the system to a sample of customers in the first quarter of next year before launching it commercially before mid-2107.
He said KBank had recognised that blockchain technology was a turning point for future business concepts and models, so it had collaborated with IBM on a pilot project using IBM’s Hyperledger Fabric infrastructure. This is used to design applications in diverse organisations with a common standard and the unique features of private blockchain.
Blockchain will be used to certify original documents by focusing on accuracy under a common standard, risk mitigation, swift verification and security enhancement.
It has been designed to be suitable for both corporate and retail customers. Blockchain will help secure data storage and authorise access by selected organisations or banks.
The technology helps reduce operational procedures of organisations and related parties.
Parnsiri Amatayakul, managing director of IBM Thailand, said blockchain and cloud computing had the potential to play critical roles in improving business transactions, adding that this project promises considerable benefits for the financial industry and beyond.