IBM and credit union service organization CULedger have agreed to work together to streamline credit union operations through the use of blockchain-based services that promise greater efficiencies and a more responsive user experience.
Roger Aitken explains how the IBM-CULedger collaboration will work in this article from Forbes:
Specifically, IBM and CULedger, a consortium of credit unions, are to work together to use permissioned blockchain technologies to create an immutable audit trail, which can be used to create new business models and transform existing business processes for credit unions. The parties also intend to help foster “greater financial inclusion” by extending the reach of services to a broader range of new members.
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The cloud-based IBM Blockchain Platform delivers the end-to-end capabilities, which clients need to quickly activate and develop, operate, govern and secure their own business networks. CULedger provides advantages to credit unions and their members by reducing risks associated with cybersecurity and fraud, streamlining internal processes and reducing administrative and operational costs.
The adoption of blockchain technology, it is said by the parties, will help “build continued momentum among all demographics”, as well as small and medium enterprises (SMEs) that currently lack access to financial services.
By creating a permissioned blockchain network where services can be shared among all credit unions, CULedger claims that it will improve services such as identification authentication, regulatory compliance around know-your-customer (KYC), lending and payments, while making it easier and more efficient for consumers to conduct any interactions that require authentication.
