Russia’s One of Largest Banks and a Blockchain Platform

Alfa-Bank is one of the largest private banks in the Russian Federation and this fact once more underlines the strength of this bank. The bank made an interesting announcement on December 1. According to the announcement, Alfa-Bank will use blockchain-based applications to automate services for freelancers as well as well-employed workers.

It is worth mentioning that the bank’s new service is based on Waves Enterprise’s blockchain platform and covers the entire process of registration and remuneration for self-employed individuals. The new service includes payments settlement, income registration, and tax payments.

Interestingly, the new blockchain-based service freelancers to get direct remuneration via any bank. A distributed ledger technology (DLT) as well as embedded smart contracts with an end-to-end integration into the banking core settlements and clearings system allows implementing an automatic formation of payment instructions, with direct transmission of payment instructions via DLT and bank accounts of self-employed in any bank.

Blockchain technology and interesting details

It is worth mentioning that the new service comprises two applications including the enterprise-focused “Alfa.Corporate”. Another application is the “My income” platform for individuals.

Importantly, Waves Enterpsise’s blockchain technology provides a secure data exchange between the bank and a business. Moreover, it also provides transparent and immutable data storage.

Interestingly, the target audience of the new service includes self-employed workers such as taxi drivers. Moreover, cleaning and repair services, and others. It is worth noting that Russia’s one of the largest private banks emerged as one of the most blockchain-friendly banks in the country. As a reminder, Alfa-Bank became the first Russian bank to join Contour, a DLT platform. This platform connects the world’s financial giants like HSBC, ING, and Citi.

Notably, the network allows bank customers to track the processing and modification of trade finance transactions and reduce operational costs. Importantly, Contour is focused on the process of drafting and issuing letters of credit using R3’s Corda blockchain. The history of this initiative dates back to 2018 when R3 and eight banks launched Contour. Interestingly, world-famous banks such as HSBC, ING, Citi, BNP Paribas, and others took part in this project.

People should take into account that the Contour network finally went live last month. Other banks in Russia as well as around the world should pay more attention to such projects. Alfa-Bank made the right decision when it decided to offer blockchain-based applications to freelancers and well-employed workers. This way it will be easier to support its customers.