One of China’s big four banks is making extensive use of blockchain technology at its Hong Kong subsidiary to facilitate property transactions.
Bank of China Hong Kong (BOCHK) has revealed that it now uses blockchain technology to process 85% of its mortgage-related property valuations, amidst an ongoing drive by the bank to deploy the latest fintech applications.
Speaking at the official opening of BOCHK’s new branch in the Hong Kong Science and Technology Park (HKSTP), general manager of information technology Rocky Cheng Chung-ngam said that digital ledgers can greatly expedite the speed and transparency of property valuations by reducing the need for document exchanges.
“In the past, banks and appraisers had to exchange faxes and emails to produce and deliver physical certificates,” said Cheng to South China Morning Post. “Now the process can be done on blockchains in seconds.”
BOCHK is betting heavy on fintech and smart banking to improve the efficiency of its operations, expanding its fintech-dedicated staff by 50% over the past two years to a team of around 150 experts.
Its new branch at HKSTP is a 24-hour smart bank that provides video-banking services, and will be used by BOCHK to develop more applicable forms of fintech.
Hong Kong’s defacto central bank, the Hong Kong Monetary Authority, is leading the drive for greater fintech adoption, with the imminent launch of the Fastest Payment System that permits real-time transfers between lenders.