Wells Fargo develops blockchain banking prototype to improve efficiency and speed of cross-border correspondent banking payments

Rage Comment : Wells Fargo, ANZ and SWIFT have completed a platform that can improve the efficiency and speed of cross-border correspondent bank payment reconciliation and settlement, allowing two banks to coordinate payments with each other. By using distributed ledgers to provide real-time transaction records, financial institutions can make costs more transparent and settlement transaction disputes can be resolved more quickly. This shows that in order to reduce cross-border transaction costs, banks are also looking for ways to seek corporate services. I believe that blockchain technology can bring a lot of convenience to banks.

Translation: Nicole

Wells Fargo, ANZ and SWIFT have worked together to create a prototype that illustrates how blockchain could work in correspondent banking.

In a recent blog post, the three companies outlined the key features of the new technology they have developed, a platform they believe can “improve the efficiency and speed of cross-border correspondent banking payment reconciliation and settlement.”

The prototype allows two banks to coordinate payments with each other via Swift, which provides a real-time record of transactions using a distributed ledger.

Judd Holroyde

Judd Holroyde, head of global product management at Wells Fargo, said in a statement:

“By providing real-time financial transaction status tracking services, we can create better value proposition for consumers, more transparent visibility into fees paid to or from participating financial institutions, more accurate fee recovery, and faster resolution of settlement transaction disputes.”

As an industry, correspondent banking has discussed the subject of blockchain in the past. BAFT, the main transaction body for correspondent banking, has hosted a number of blockchain-themed events to date and has established an internal education initiative aimed at providing its members with timely information on blockchain technology.

Banks, seeking to transfer money across borders cheaply, have been looking to corporate services, such as those offered by Earthport, a provider of internet payment infrastructure.