Microsoft has teamed up with Israel-based bank Hapoalim to make use of blockchain technology in the provision of bank guarantees for clients. This partnership was announced on Wednesday 6th October, 2017.
Bank guarantees are financial instruments used by issuing banks to cover a debtor’s liabilities. The current situation is that clients of Bank Hapoalim who require bank guarantees had to physically travel to one of the bank’s branches to have the transactions executed. With the introduction of the blockchain technology in the mix, the process of signing up guarantors will be much simplified. In the early stages, Microsoft will test the effectiveness of the process by using its Azure cloud service in the development of a new tool.
Speaking about the collaboration, CEO of Microsoft Israel, Shelly Landsmann said “This is the first collaboration of its kind in Israel in the banking sector that will enable a digital revolution, access to advanced services and the combination of technology and business needs. Microsoft is currently supporting a large number of Blockchain technologies that enable the deployment of different types of networks, depending on the system and the business needs, on the Azure cloud platform.”
This is one of many encouraging news coming out of the blockchain space in recent times that show that an increasing number of people and industries are beginning to acknowledge the potential that the technology holds. It is expected that as more people discover the various causes for good that the technology can be used for, the more the voices of “uninformed decent” will be drowned out.
The Times of Israel reports that Bank Hapoalim is in collaborative works with the Bank of Israel and other industry players in an effort to transform and modernize existing regulatory requirements and frameworks to allow for the integration of new technologies with existing financial systems.
This new process will enable customers get their bank guarantee instruments without the need to go physically to a bank branch. Whiles speaking about the impact this collaboration will make for the bank’s customers, Bank Hapoalim’s CEO Arik Pinto said that “The new process will enable Bank Hapoalim customers to receive security documents in a digital, automated and secure manner, without physically coming to the branch and in a very short process. The use of Blockchain technology will significantly improve the customer experience and the level of trust in the banking system”