Creating knowledge sharing session for Thai people to keep up with emerging innovation
Digital Ventures, the financial technology investment arm of Siam Commercial Bank (SCB) with ambition to drive changes in Thai banking industry, unveiled its perspective on blockchain, the disruptive technology in the world of financial services and online transactions. SCB is the first Thai commercial bank to invest in feasibility study in order to test the enterprise-grade blockchain technology with aim to build stable, real-time cross-border money transfer platform as it recently announced direct venture capital investment in Ripple, a US-based leading provider of financial settlement solutions.
Thana Thienachariya, Chairman of the Executive Committee, Digital Ventures said that “Many global banks and financial institutes are currently looking forward to blockchain technology as a promising innovation to enhance service level of financial transactions in various aspects, which benefits consumers in terms of faster services, greater security and better cost-savings. Several Thai financial regulatory authorities are also exploring the viability of this technology in embracing the global trend, as well as driving the country forward in response to Thai government’s Thailand 4.0 policy.”
“We recently partnered with Ripple, a leading developer of blockchain technology, to invest in, conduct feasibility study and test cross-border money transfer system utilizing blockchain. This is a major move in Thai financial industry in adopting technology from world’s leading innovator to build real-time cross-border money transfer platform, while accentuating SCB’s strategy to offer the best customer service quality. Therefore we are keen to take part in promoting the knowledge and understanding on blockchain technology among Thai people in getting ready for this emerging financial innovation”
According to Suvicha Sudchai, Managing Director, Digital Products, Digital Ventures, “Many people understand that blockchain is similar to a digital currency service known as bitcoin. In fact, bitcoin is a kind of product that utilizes blockchain technology. Blockchain, also known as Distribute Ledger Technology (DLT), is a type of online database solution that helps create a faster, more secure and cost-saving transactions, with added level of transparency and traceability. The concept of blockchain data storage is an open membership that allows every node in the network to access, which is contrary to the current practice where database of online transactions is kept in one place or one organization. Its consensus verification protocol allows the network to agree updates to database collectively, and these updates cannot be deleted.”
Blockchain is similar to the Internet in the way that both are data storage systems that allow access to all users or members. Blockchain is generally divided into two main types: public blockchain and private blockchain. In this sense, public blockchain is similar to the Internet that gives equal access to all content for all, while private blockchain is like Intranet that allows data access to only authorized users or organizations.
“Blockchain is currently adopted in various business applications including cross-border money transfer service. The fact that blockchain helps reduce processes in money transfer system benefits the business sector by reducing significant operating costs. Benefits for consumers are faster, more convenient transactions, shortening turnaround time in cross-border money transfer from a few days to just a few minutes, as well as lower service fee and higher security. With these, blockchain is believed to become a highly influential technology in the near future. Currently over 50 top global banks e.g., Standard Chartered, Royal Bank of Canada (RBC), Westpac, National Australia Bank (NAB), Mizuho Financial Group (MHFG), BMO Financial Group and Shanghai Huarui Bank have implemented blockchain technology for their cross-border money transfer system. As with other new technologies, blockchain comes with a learning curve and takes sometime before it becomes widely adopted. We have already seen that it takes over 20 years before the Internet becomes such an integral part of our lives, with so powerful influence that we could not live without,” concluded Suvicha.
About Digital Ventures
Founded in 2016, Digital Ventures, a subsidiary of Siam Commercial Bank, is a company that promotes innovation in financial technology. Following the bank’s strategy to enter digital transformation, Digital Ventures aims to be a part in driving changes in the banking industry through investment, innovation and supporting Thai businesses to grow with SCB. At its inception, Digital Ventures has 50 million USD capital (1,760 million baht) for investment in financial technology. For more information, visit www.dv.co.th.
