Chinese Banks to Put Credit Blacklist on a Shared Blockchain
According to a local news source Sina Finance on Thursday, Suning Bank established the blockchain system to be able to transfer its blacklist of borrowers into a distributed database in a bid to permit collaboration with other banks on preventing credit fraud.
Using the system, each participating establishment becomes a node of the blockchain that could get into the initial blacklist shared by Suning Bank. Node associations can further upgrade the listing with their own information, the report indicates.
Founded by Suning in 2017, Suning Bank is among the first online-to-offline commercial banks in China, launched by recognized private companies to supply loans to small and medium businesses.
The move to share data on users’ trustworthiness is the most recent by the bank to utilize blockchain technology in managing its credit programs.
In September of last year, Suning Bank joined another blockchain consortium created by two other private commercial banks — CITIC and Minsheng — that utilizes a blockchain platform to document trades of domestic letters of credit.
In March, CITIC touted in its own annual financial filing that the platform has eased transactions worth a total of $156 million.