Eight Chinese banks have teamed up with blockchain research startup Shenzhen Blockchain Financial Services to bring efficiencies and fight forgery in the country’s receipts financing industry.

Despite the expansion of China’s receipts market, the announcement comes at a time when small- to mid-sized firms are unable to fulfill demand.

According to the firms involved, the new alliance will benefit the sector by increasing the reliability and speed of transactions – another example of how blockchain technology could transform the traditional financial services.

At an event announcing the partnership, Cao Feng, a former senior IBM China official and the research firm’s chairman, spoke broadly about the potential for blockchain, stating:

“The application of blockchain technology in our society is far from reaching its potential. With information flooding on the internet, the need to manage internet security effectively becomes crucial to firms. I think blockchain would play a major role in the future.”

Adding to the challenges faced by the the industry, is the authenticity of receipts – or lack thereof – as fakes have been rampant in recent years due to lack of regulation and scrutiny. As a result, domestic industry experts are looking for ways to contain these issues, a movement that the partnership is aimed to support.

The new group includes eight local banks – Ganzhou, Guiyang, Suzhou, Shizuishan, Jiutai Agricultural, Yaodu Agricultural and Langfang – along with government representatives from the cities of Shenzhen and Harbin, according to local media outlet Lei Phone.

The development further coincides with an increase in blockchain interest in China. Many large local firms are also developing blockchain-related products, including Alibaba’s Ant Financial, JD Finance and HNA Group.

Shenzhen image via Shutterstock