The Polish Credit Office, Biuro Informacji Kredytowej (BIK), is planning to use blockchain technology for storing sensitive customer data. For this, the largest credit bureau in Central and Eastern Europe (CEE) will collaborate with blockchain startup Billon.
According to Billon, which made the announcement on Monday, the solution is fully compliant with the European Union’s General Data Protection Regulation (GDPR). The technology will ensure the visibility, traceable history and full data integrity for any customer’s document, such as banking records, insurance claims, loan agreements, phone bills, and terms & conditions.
BIK is owned by the country’s largest banks, including PKO Bank Polski, PKO SA, mBank, Idea Bank, BGZ BNP Paribas, ING Bank, and Bank Handlowy. It tracks more than 140 million credit histories of about 1.2 million companies and 24.3 million people.
Billon CEO Andrzej Horoszczak commented on the partnership:
“This solution provides the world's first GDPR-compliant blockchain platform that streamlines customer service processes and implements customer rights such as the ‘right to be forgotten.’ We're fixing the problem of consumer data control, creating a level playing field between individuals and corporations.”
The benefits could affect more than the financial sector, and we anticipate it will soon be adopted by industries such as telecommunications, insurance and utilities,” he added.
Mariusz Cholewa, President of BIK, said that the collaboration with Billon was long-term. He expressed his confidence that blockchain could transform the way the financial institutions communicate sensitive data with customers. He added that the blockchain solution would soon include electronic delivery with the remote signing of online agreements.
The system was approved by the Polish Office of Competition and Consumer Protection (UOKiK) and the Financial Supervision Authority (KNF), which makes it fully Regtech compliant.
Last year, Billon received EUR 2 million in funding from Horizon 2020, the EU’s Research and Innovation programme.
While blockchain technology is finding its way in Poland, cryptocurrencies are closely watched by the regulators. At the beginning of the year, the Polish central bank launched a new website with the sole purpose of warning against cryptocurrency-related risks.