Japan's GMO Internet Group, working in partnership with Aozora Bank Group, has created a new, online banking business set to use blockchain as well as other cutting-edge technologies to meet market demand for advanced banking services.
The partnership between GMO and Aozora will create a limited entity titled GMO Aozora Net Bank that plans to use advanced security certification, blockchain technology, artificial intelligence, the internet of things, and next generation media.
GMO claims this "internet bank" comes in response to the growth of the cashless society, proliferation of smartphones, the advancement of FinTech, and a growing intention of consumers to use internet banking. Application programming interface cooperation between banks and FinTech operators has also progressed, it said.
"New financial services such as more convenient settlements are in the process of being born," said GMO in its announcement. "In addition, through the application of blockchain technology, there is an increasing expectation for breakthroughs for safer and cheaper payments and financial services."
The new internet bank plans to use a variety of technologies to offer low-price services to businesses and consumers and will work with GMO Internet Group and external FinTech companies to develop unique services "quickly."
The full announcement points to banking products, including virtual accounts for both individual and businesses, foreign currency deposits, and a high-security debit card. The internet bank then plans to work with GMO Internet group to develop a new "settlement system utilizing blockchain technology," likely to be implemented later.
GMO Internet Group is no stranger to blockchain technology. It launched a cryptocurrency exchange in May 2017 and has since developed cryptocurrency mining hardware.
It seems the race is on between financial institutions to develop workable blockchain-based payment systems and infrastructure. A patent release revealed one of Asia's largest banks, the Industrial and Commercial Bank of China, has been investigating blockchain technology for transactions. Spanish bank Santander's first blockchain-based, cross-border payments application has recently launched for its largest markets in Brazil, Spain, and the UK.
Many of the notable blockchain payment pilots to date have involved interbank and cross-border payment settlements. Consumer internet banking using blockchain technology is also a likely development in the very near future.
Translations by Google.