SBI’s Blockchain Adventure: Beta Testing Smart Contracts and Innovation Hubs

Embarking on the Blockchain Journey

In an audacious move set for December 2017, the State Bank of India (SBI) is gearing up to beta test their Blockchain-based smart contracts system developed by the BankChain consortium. This consortium, a brainchild launched back in February, boasts a collective strength of 27 Indian banks aimed at revolutionizing the banking sector. Truly, it seems like every institution wants a slice of the Blockchain pie!

Smart Contracts: The New Best Friend of Banks

SBI’s head of innovation, Sudin Baraokar, shared that the initial tests for these smart contracts will focus on “simple things”—think of them as the training wheels of blockchain technology such as nondisclosure agreements. It’s like trying to figure out how to ride a bike before diving into the Tour de France. According to him, a lot of internal processes, like IT procurement, can seamlessly integrate with Blockchain technology. Who knew paperwork could get an upgrade?

Innovating in Mumbai: SBI’s Innovation Hub

But wait, there’s more! SBI is also putting plans in motion to construct an innovation hub in Mumbai. This isn’t just any ordinary hub; it’s a creative playground! Designed to incubate startups and host hackathons, the facility aims to research and develop cutting-edge technologies like artificial intelligence, machine learning, and, of course, more Blockchain solutions. It’s like a tech Disneyland for banking innovations, but with fewer roller coasters and more algorithms.

KYC Made Easy with ClearChain

Meanwhile, the BankChain consortium has launched a cool initiative: the KYC platform named ClearChain. Unveiled in May 2017, this platform allows banks to share customer data among consortium members, essentially creating a banking web of transparency. Imagine all your cable company’s data being shared without the conflict; that’s ClearChain—making customer verification a walk in the park, or maybe a brisk jog.

The Growing Coalition of Banks

The BankChain consortium isn’t resting on its laurels. Established in February 2017, it began with SBI as its leading member. Fast forward, and now includes 22 Indian banks like DCB Bank, Axis Bank, and ICICI Bank, plus five banks from the Middle East. It’s like a mega team-up in the superhero world of banking—who doesn’t want to join forces?

As SBI prepares to dive into this brave new world of Blockchain, we can only hope they don’t forget to bring snacks for the journey. After all, innovation can be a hungry endeavor!