Report revealed today that new Blockchain-based solutions are emerging from a partnership between the two giants operating in the IT and credit union industry.
The two companies announced in a press release that they are partnering to develop sustainable solutions for credit union companies. These blockchain-based solutions are hoped to introduce new processes and business models to the industry.
According to them, the solutions will target some key service areas of credit union companies such as lending & payment services, digital identity authentication, Know-Your-Customer compliance and some other processes requiring consumer authentication.
Their reason for basing these solutions on the blockchain technology is to ensure that members of credit unions can access financial services no matter their locations. Giving that the industry has more than 260 million members and over $1.7 trillion circulating assets, these solutions will simplify their operational processes.
The press release stated that every member of the credit union would have access to “MyCUID,” a “customizable CULedger-issued digital credential”. By this digital identification, members of different credit unions can easily authenticate every financial transaction between them.
Based on the timeline for the services, the report states that the first product will be available before this year ends. Therefore, members of credit unions worldwide will start reaping the fruits of this joint project on the CULedger network very soon.
In an earlier report, it was gathered that this is not the first time for CUSO when it comes to improving the industrial processes. On December 2018, the organization had joined a software firm R3 which offers a distributed database tech to financial institutions. Then, the firm led a consortium of more than 200 members which came together to develop “Corda” which was designed to simplify the processes of financial transactions and protect transaction data.
CUSO aim of joining R3’s blockchain ecosystem then was to streamline their operational processes. Also, they made a move to tighten the security of the members against cyber-attacks and online fraud.
By partnering with IBM in pursuit of blockchain-based solutions for members, it is evident that the organization is aiming to achieve more efficiency in members operations.
According to what Marie Wieck says, this partnership will enable credit unions to be corporating freely amongst themselves. They can operate as a singular entity by exchanging data quickly in a more transparent and permissioned way. According to the manager, each credit union will still have control over their operations while still working together with others.
In the house of the tech giant IBM, reports reveal that they have continued in carrying out multiple projects aimed at solidifying users’ activities. Presently, they have many new patents and enterprise blockchain offerings under their “IBM Blockchain Project.”
Also, reports reveal that the tech giant recently launched an “in-house security testing tool.” According to the company, the tool will improve the identity authentication possesses, access permission process and address the vulnerabilities of smart contract.
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