Japan’s SoftBank Developed a Blockchain-Based Consumer Data Management System
Japan’s SoftBank Group has developed a blockchain-based system to manage personal financial data. The product will help lenders access the credit histories and other relevant data of potential customers.
The Japanese telecom SoftBank Group has built a blockchain-based system to manage personal financial data. As reported by Nikkei Asian Review, banks now will be able to instantly access the credit history and consumer activity of potential borrowers.
The system has been developed by SoftBank Technology, a subsidiary of SoftBank Group, in collaboration with Sivira, a blockchain startup. SoftBank Technology will lead the infrastructure.
Sivira is an Osaka-based company that develops platforms and products based on distributed ledger technology (DLT). The startup has already developed several systems, including Broof, Proof log, Hublive, and Soul Gem.
The new system developed by SoftBank will help financial institutions conveniently estimate the borrower's solvency. Currently, this process requires a relatively long time, as the banks have to request, evaluate, and confirm income data and the account balance, among others. Personal information is generally stored on a server or a cloud, which makes them vulnerable to hacker attacks.
Blockchain makes it possible to share personal data between more computers that can verify each other's records. The technology can guarantee security, transparency, the speed of processing, and convenience of data management.
SoftBank Technology’s blockchain-based system will offer financial institutions the access to customer’s credit history and real-estate ownership. Its database is adding about 170,000 records each month. The company plans to launch the database in 2019. By 2020, SoftBank expects to get orders from 30-50 companies – mainly banks focused on consumer lending.
SoftBank is very active when it comes to blockchain implementation. In September, SoftBank Corp, the company’s telecommunications subsidiary, announced the collaboration with Sprint Corporation, Taiwan Far EasTone Telecommunications Co, and blockchain startup TBCASoft, to launch the blockchain consortium “Carrier Blockchain Study Group” (CBSG).
Earlier, SoftBank revealed plans to invest $880 billion in various emerging technologies, including blockchain and the internet of things (IoT).
SoftBank is not an isolated case of Japanese multinationals showing interest in crypto/blockchain space. At the end of October, Japanese bank SBI Holdings partnered with Wirex to launch a cryptocurrency payment card denominated in Yen. The card will help customers convert crypto coins to fiat money.