Blockchain’s varied applications are becoming more useful for global banking institutions with each passing day. Yesterday, Polish retail banks rolled out a blockchain-based customer data platform developed by the Polish Credit Bureau, also known as Biuro Informacji Kredytowej, or BIK.
BIK, the biggest credit bureau in Central and Eastern Europe, has enabled banks in Poland to send notifications of commissions and fees changes on blockchain via its new document management product.
Polish Credit Bureau and Billon were developing the platform since 2018
Developed in collaboration with Polish-British fintech firm, Billon, the BIK Blockchain Platform has been in development since the project was first announced in May 2018. The companies revealed news of the platform’s launch in separate announcements on April 16.
According to a statement by Billon, the main purpose of the BIK Blockchain Platform project is to eliminate paper-based client notifications by digitizing the data and recording it on blockchain to enhance security. According to the firm, the jointly developed system fully complies with European Union’s financial records-related regulations, including the European Union’s MiFID II and GDPR.
Enhancing data security and access features
By launching the platform, the Polish Credit Bureau and Billon intend to provide a more secure alternative to traditional documentation management tools like e-mail and internal banking communications, as well as paper delivery, Billon noted.
According to the BIK, the blockchain technology used in the platform ensures an increased level of security. Documents are distributed across a number of network nodes, with each document having its own unique address. “These features guarantee high resistance to potential failures, as well as reduce chances of undesirable interference of stored documents,” the BIK elaborated.
Additionally, the new blockchain-powered data system is designed to significantly expand data access features for both banks and customers, the BIK continued. According to the bureau, the platform allows users to access all document history with the bank. This is accomplished via a blockchain-integrated access tool called the BIK Portal.
BIK CEO, Mariusz Cholewa, highlighted that the launch of the BIK Blockchain Platform marks the first step of the product’s commercialization. He continued:
“This version eliminates the need for paper notifications. Further versions will focus on streamlining complex multi-party processes and expand to other market sectors in Poland.”
Cointelegraph has reached out to both BIK and Billon for additional information on the development. We will update this story as soon as we hear back.
A number of Polish banks have started experimenting with blockchain technology for enhancing documentation. In mid-2019, Warsaw-based Alior Bank began utilizing the public Ethereum (ETH) blockchain to authenticate its client documents. Previously, another major Polish bank, PKO Bank Polski, partnered with blockchain company, Coinfirm, to launch a blockchain-based verification system for bank documents.