The Italian Banking Association (ABI) has opened a pilot project on blockchain-based interbank reconciliations.
ABI and 14 banks are initially participating in the project, which looks to apply blockchain technology to interbank processes. It objective is to attain the benefits derived from data transparency and visibility, increase speed in executing transactions and perform checks and exchanges directly within the application.
By leveraging blockchain and Distributed Ledger Technology (DLT) the aim is interbank reconciliation, which verifies the matching of correspondent accounts that involve two different banks that contain transactions executed between two customers of two banks.
The group has selected R3’s blockchain-based Corda platform to increase the visibility to exchange of interbank transactions, verify the matching of correspondent accounts and highlight discrepancies for automated remediation.
The pilot started in December and aims to make bilateral channels available through which each counterparty can exchange information via a series of smart contracts providing real-time feedback on transactions passing over the network. ABI Lab is collaborating with NTT Data for development of the application and SIA as provider of the node infrastructure and verification process.
A total of 14 banking institutions are involved in this first interbank blockchain pilot: Banca Mediolanum, Banca Monte dei Paschi di Siena, Banca Sella, BNL BNP Paribas Group, Banca Popolare di Sondrio, Banco BPM, CheBanca! – Mediobanca Group, Credito Emiliano, Crédit Agricole, Credito Valtellinese, Iccrea Banca, Intesa Sanpaolo, Nexi Banca, Ubi.
Earlier this year, Santander and Broadridge Financial Solutions completed a first practical use of blockchain for investor voting. The bank and the Global FinTech leader said the implementation of a solution that employs blockchain technology enhances global proxy vote transparency and increases operational efficiency, security and analytics. This is beneficial for investors, issuers, agent banks and custodian banks.
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