ICICI Indian Bank Is Looking Forward for Blockchain Impact on Banking Sector

In an August 24, 2018 Abhijit Singh, Head of Technology at ICICI Bank, told a local media outlet he an optimistic outlook on the impact blockchain technology would have on the banking sector.

While the general perception of blockchain being a disruptive technology for the banking industry, more traditional banks are jumping on the bandwagon in order to look at how the tech can be integrated into their business model.

It seems that China’s largest banks, such as the China Construction Bank Corporation (CCB) and the Industrial and Commercial Bank of China (ICBC), are assumedly utilizing blockchain platforms to make the sale of their products more efficient.

Along with the Chinese banks, several Indian banks cooperated to create the India Trade Connect. This will be a blockchain-based network with the goal to increase transparency and provide better risk management model.

In 2017, the state of Telangana government, located in southern India, is also exploring the ability to secure land records by using blockchain. It is also reported that a government think-tank called Niti Aayog might be in the works of developing a national strategy for integrating blockchain.

Singh gave an interview with YourStory, stating that the technology is essential to the bank’s longevity:
“The advantage that blockchain can bring is huge. As a bank, we are always thinking about things we can do to increase our consumer convenience. The blockchain technology can take away traditional intervention while removing paperwork and simplifying constructs.”

Singh also went on to compare blockchains impact to that of the introduction of the internet:
“Even the Internet at one point of time was difficult to connect. At that moment, not everyone understood how disruptive it would be. Similarly, blockchain is in that stage where people are starting to understand and work on the technology.“

It has been stated that the ICICI Bank is exploring investing in both startups as well traditional companies, as the bank’s different strategies will require multiple tactics.

As for the bank’s framework for utilizing blockchain, Singh said that Trade and remittances
will be two areas perfect for the distributed ledger technology.