Korea’s oldest bank, Shinhan Bank, has launched a blockchain-enabled lending platform to speed up the loan process, South Korean news agency Yonhap reports on May 27.

Shinhan Bank’s blockchain-powered loan system intends to boost cost and time efficiencies in the lending process, reportedly enabling the public to apply for loans online and get their credits without face-to-face interaction.

According to the report, the new system is the first initiative of its kind introduced in South Korea.

Specifically, Shinhan Bank’s new lending system applies blockchain technology in the verification and confirmation processes within the network of affiliated institutions and banks. The system allows the parties to register and operate in the network using an encrypted one-time password, enabling easy and instant access to the data necessary for the approval and issuance of loans.

A Shinhan Bank official reportedly said that the recent application of blockchain technology is a part of the institution’s attempts to provide remote services for clients. He added that the bank will continue to develop innovations with remote access as well as products to expand accessibility.

As the second-largest commercial bank in South Korea, Shinhan Bank has been actively embracing blockchain technology over the last year. In late 2019, the bank was reported to be implementing blockchain in internal processes in order to reduce the risks of human error. Previously, the bank also reportedly implemented interest rate swap transactions based on blockchain.

Recently, a group of four banks have successfully issued a blockchain-based type of a legally binding loan agreement called a promissory note. The system reportedly reduced the steps necessary for issuance the note by over 50%.