CULedger, a credit union service organization (CUSO) based in Denver, Colorado, has partnered with tech-giant IBM to deliver blockchain-based solutions and services to support credit unions.
Image: CULedger and IBM join hands to develop blockchain-based finance solutions. Photo: Courtesy of xresch/Pixabay.
As part of the collaboration, CULedger and IBM will use permissioned blockchain technologies to create an immutable audit trial that can be used for the development of new business models and transformation of existing business processes for credit unions.
Furthermore, both firms aim to bring greater financial inclusion by extending reach to a broader range of new members.
The permissioned blockchain network will enable CULedger to improve services such as identification authentication, regulatory compliance around know-your-customer (KYC), lending and payments, making it easier for consumers to conduct any interactions where authentication is needed.
CULedger CEO and president John Ainsworth said: “A cooperative model that helps improve the member experience while benefitting all credit unions is the ideal approach to ensuring the next wave of financial innovation for the credit union industry.
“We are creating a network through which all members can join and access new services and enabling credit unions to become even more competitive while addressing new market dynamics where members are demanding even more for their financial services provider.”
IBM said that credit union members across the world will also have access to a CULedger issued digital credential, called MyCUID, which meet the requirements of self-sovereign identity supported by the Sovrin Foundation.
IBM Blockchain general manager Marie Wieck said: “Credit unions will be able to cooperate and receive shared value from quickly exchanging sensitive data in a permissioned, individually controlled and transparent way. This decentralized approach using blockchain helps put the customer in control of their own identity.
“The work underway between CULedger and IBM will also lay the foundation for new kinds of services and collaboration among credit unions as we work together to scale and extend the network.”
IBM said that the initial services on CULedger’s blockchain network will be available to credit unions across the world later this year.