CULedger will join hands with IBM to develop an unalterable audit trail using permitted blockchain innovations that can be utilized to establish fresh business models and reshape prevailing credit union business processes. The firms also plan to contribute to better economic participation by increasing spread to a wider variety of members.
With over $1.7 trillion in liquid assets, the credit union sector offers its service to over 260 million members across the world and is traditionally recognized for its exceptional customer service. Adopting blockchain technology will assist in driving ongoing momentum within all demographics in addition to small and medium-sized enterprises which presently lack access to services related to finance.
By establishing a permitted blockchain infrastructure where facilities can be accessed across all credit unions, CULedger will enhance services such as identity confirmation, legal compliance around know-your-customer (KYC), loans and disbursements, while apparently making it easier and cheaper for consumers to undertake any dealings that necessitate verification.
John Ainsworth, CEO and President, CULedger, said “A cooperative model that helps improve the member experience while benefitting all credit unions is the ideal approach to ensuring the next wave of financial innovation for the credit union industry. We are creating a network through which all members can join and access new services and enabling credit unions to become even more competitive while addressing new market dynamics where members are demanding even more for their financial services provider.”
Globally, members of the credit union will also receive rights to a digital credential provided by CULedger, called MyCUID, which conforms to the privacy-by-architecture criteria of self-governing identity backed by the Sovrin Foundation. MyCUID will assist credit unions in supporting mutual financial services that enable members to make dealings on the network between any credit union.
The future value of Blockchain for the businesses is projected to grow to over $360 billion by 2026, then increase to over $3.1 trillion by 2030, according to the Gartner report 1 published recently. Blockchain technology is being utilized to assist in achieving consumer needs for secure, quicker and more efficient dealings as the financial services sector begins to evolve.
Marie Wieck, General Manager, IBM Blockchain, said “Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way. This decentralized approach using blockchain helps put the customer in control of their own identity. The work underway between CULedger and IBM will also lay the foundation for new kinds of services and collaboration among credit unions as we work together to scale and extend the network.”
As the front runner in Enterprise Blockchain, IBM has in-depth skills and familiarity in developing blockchain systems among sizable members’ ecosystems in the financial sector. IBM Blockchain fully backs legitimate business requirements while discussing responsibility, confidentiality, scalability and high network safety requirements. Starting later in 2019, initial services on the blockchain network of CULedger will be accessible by credit unions across the globe.