The State Bank of India (SBI) is joining Liink, J.P. Morgan’s peer-to-peer blockchain-based data network, according to a report from The Economic Times. The partnership will help SBI increase the speed of customer transactions, including cross-border payments, and lower the costs.
With the network, “time taken to resolve cross-border payments-related inquiries can be reduced to a few hours from up to a fortnight,” noted FT. Using Liink will also help lower transaction costs. While bank-led remittances can cost 10 percent globally, blockchain “removes the need for correspondent banking,” Nitin Sharma, partner at Antler Group, told ET.
By integrating Liink into its operations, SBI will be able to exchange payments-related information with the other financial institutions (FIs) on the platform. About 100 banks are live on the network now, according to ET.
Like many FIs and FinTechs, J.P. Morgan has been increasing its commitment and interest in digital currency and blockchain recently. The bank established a business unit solely focused on blockchain development, called Onyx, in October. Liink now operates under Onyx.
Blockchain can be a “game-changer” for facilitating international and large-value payments as well as confirming payment details, as Umar Farooq, Onyx CEO, told PYMNTS in November. Digitizing reduces payment friction, Farooq added, but also noted that their blockchain programs are meant to complement other payments initiatives—not disrupt them. “You have to figure out what you’re using blockchain for,” he warned.
J.P. Morgan plans to expand its blockchain operations in India, P.D. Singh, managing director and head of corporates and FI at J.P. Morgan Chase Bank in India, told FT. “We continue to actively explore how emerging technologies can enhance our clients’ experience,” said Singh.
Liink is adding the ability for its participating banks to validate accounts before making transactions to mitigate transaction fraud and rejections, ET reported.