Australian Startup Partners with HSBC to Test Two Blockchain Platforms
Moneycatcha announced a partnership with HSBC Australia to test two of its blockchain-based projects focused on home loan operations. The platforms aim to speed up processing, reduce errors, and secure transactions.
Moneycatcha Pty Ltd, an Australian fintech-oriented startup, entered an agreement to partner with HSBC Australia to test its two blockchain platforms – Homechain and Regchain. Homechain is a platform focusing on home loan processing, while Regchain is an instrument to support regulatory compliance for financial companies.
The goal of the platforms is to increase the processing speed and improve conditions when it comes to home loan operations.
According to CEO Ruth Hatherley, both platforms will be checked in a pilot test conducted together with HSBC Australia in order to assess their potential and ability to securely operate with data.
“Because our platforms touch major processes and spread across several divisions of an FI [Financial Institution], we encourage banks to engage with us initially on a limited-scope, light-touch pilot,” said Mrs. Hatherley.
“We prove the capabilities of the system and the business case to change the way they do things. After this, we move into phase 2 where we widen the scope and start talking about how things could work in a full production environment,” the CEO added.
Homechain will use blockchain to fully automate the home loan processes in 14 clear steps, from application to execution. The anticipated result is much faster processing, which may take up to five days rather than the current 42 days, alongside boosting security and data reliability.
The blockchain platform will be integrated with Property Exchange Australia (PEXA), an Internet real estate exchange platform that provides the conditions to conduct property operations electronically.
As for Regchain, it also applies distributed ledger technology (DLT) to offer loan risk monitoring solutions, including home loans, supporting compliance and risk management.
The platform will be able to monitor data live, displaying significant updates and reporting to regulators like Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA).
Moneycatcha Founder Ruth Hatherley is sure that blockchain will shortly become indispensable for financial institutions:
“I believe that private, permission-based blockchain technology will form part of the underlying systems architecture of the financial services industry in the next 5-10 years.”
“Imagine a world where everyone in the finance ecosystem shared and could view the same data set and that data was provided directly from trusted sources of truth points, providing instant credit decisioning and access to money,” added Mrs. Hatherley.
Australia is one of the leading countries when it comes to promoting blockchain technology. The Australian Stock Exchange (ASX) is already testing it for different exchange operations.
Earlier, three fintech companies proposed the Reserve Bank of Australia (RBA) to create the Digital Australia Dollar (DAD).