The banking branch of Chinese retail giant Suning is testing a consortium blockchain that would allow participating banks to document and update a shared book of users with poor credit scores. Based on a local news source Sina Finance on Thursday, Suning Bank has developed the blockchain system to be able to move its blacklist of borrowers into a distributed database in a bid to permit collaboration with some other banks on preventing fraud. Utilizing the system, each participating institution becomes a node of a block chain that could access the original blacklist shared by Suning Bank. Node institutions can further update the list with their very own data, the report suggests.
Founded by Suning in 2017, Suning Bank is among the very first online-to off-line commercial banks in China, established by established private companies to supply loans to small and medium enterprises. The movement to share data about user reliability is the most recent by the financial institution to use blockchain technology in handling its credit systems. In Sept of last year, Suning Bank joined another blockchain consortium created by two other private commercial banks – CITIC and Minsheng – which utilizes a blockchain system to document transactions of domestic letters of credit. In Mar, CITIC touted in its own annual financial filing that the platform has already facilitated transactions worth a total of $156 million. Suning picture via Shutterstock. The leader in blockchain information, CoinDesk is a media outlet that strives for the greatest journalistic standards and complies with a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.