Russia’s Raiffeisen Bank and Askona Life Group to Use Blockchain For Automated Settlements

On Friday, May 31, 2019, Raiffeisen Bank, part of the Austria market, has recently announced news regarding the implementation of a blockchain ecosystem with the involvement of Askona Life Group, a firm devoted to offering sleep products. In the announcement, the reasons why blockchain technology was essential and what it means for the overall market were revealed.

According to the Investment Director of Askona Life Group, Evgeny Kirillov, the ultimate goal is to increase efficiency in operations. The reason for this endeavor was to find a way to make automated settlements easier while limiting expenditures.

One of the reasons why blockchain was considered, was merely due to the fact that “ready-made solutions that meet all our requirements,” just didn’t exist shared Kirillov.

What started as a way to create a possible solution for efficient automated settlement systems for Askona Life Group has potentially resulted in a system that banks and other groups can use, given that they too emphasize on the same or similar type of processes housed within the sleep products provider’s operations.

Head of Corporate and Investment Banking Products Department, Anatoly Shvedoc, emphasized that the use of blockchain has the ability to provide newer types of services for customers. As per their quote:

“The technology of distributed registries allows us to bring services that our bank provides to corporate customers to a new level and offer products that banks have never offered to their clients before. In fact, the bank created a new channel for remote banking services for customer payments.”

Some of the key problems that this respective blockchain ecosystem is expected to resolve include poor communication within different departments and stages of payment and the creation of payment order – both of which are difficult to maintain via their extraneous communication system in place.

Kirillov also shared that the new ecosystem will help to not only, “simplify the settlement procedure,” but also will, “reduce labor costs by more than 40% and reduce the risk of erroneous postings to 0.”

The Investment Director believes that this is just the start to something big, adding that both parties plan to expand upon the processes included on the ecosystem – with the possibility of connecting suppliers, partners and other financial institutions all under one roof.

In actually building the ecosystem, the Head of IT at Raiffeisen Bank, Nikita Shvetsoc, shared that a lot of was considered. Namely, she said:

“High requirements for information security were taken into account, including the use of cryptographic information protection and electronic digital signature tools accepted at the bank.”