BLOCKCHAIN
APPLICATION IN
CORE BANKING
WE ARE TEAM OF EXPERTS BRIDGING
ARTIFCIAL INTELLIGENCE,
BLOCKCHAIN,
CYBER SECURITY
PROVEN USE CASES ACROSS
ECOSYSTEMS.
Banking on Blockchain.
Charting the progress of distributed ledger
technology in financial services.
About company
What do we do.
Block chain implementation Block chain application across various markets
KYC
Problems and solution
PAYMENTS
Problems and solution
SMART CONTRACT
LOAN SYNDICATION
FRAUD DETECTION
Benefits
How can Snapper add Value
How can Snapper Help
Current Scenario
Problems and solution
Problems and solution
Frauds in Banking Sector in India
Potential Benefits out of Blockchain Implementation
Blockchain, AI and Cyber Security
Potential saving estimation
Current Implementation and Execution across different area.
BLOCKCHAIN IMPLEMENTATION
ACROSS VARIOUS SECTOR
1
1500
Fig in Crores
Fake bank
loan
documents
result in
Rs.8734
crore fraud.
LOSS SUFFERED DUE TO DOCUMENT
FRAUD IN Cr (2010-12)
1000
500
0
Series 1
INDIAN
STATE
OVERSEAS
BANK OF
BANK
INDIA
1372
1257
BANK OF
CANARA
UCO
BARODA
BANK
BANK
1089
682
578
PROBLEM
SOLUTION
The average bank
spends £40 million
a year on KYC
Compliance
some banks spend up
to £300 million
annually on
KYC compliance,
Anti Money
Laundering (“AML”)
checks and
Customer Due
Diligence (“CDD”).
SWIFT has established a KYC Registry with 1,125
member banks sharing KYC documentation

Full transparency


Proper
compliance

Secure, compliant
data sharing

Efficiency and
trust in identity

Remove the
duplication

Spot irregularities
or foul play

Privacy &
self-sovereignty

Secured by
cryptography
2
PROBLEM
×
×
×
×
×
×
×
Inefficient on boarding
Vulnerable KYC
Cost and delay
Error prone
Liquidity requirement
Vulnerable KYC
Demanding regulatory
compliance
SOLUTION






Seamless KYC
FX liquidity capabilities
Real-time AML
Reduced settlement time
Cost savings
Automated compliance
3
SMART CONTRACTS
TRADITIONAL CONTRACT PROBLEMS
1-3 days
Manual remittance
Escrow necessary
Expensive
Physical presence
Lawyers necessary
SMART CONTRACT SOLUTIONS
minutes
Automatic remittance
Escrow may not be necessary
Fraction of cost
Virtual presence
Lawyers necessity reduced
4
LOAN SYNDICATION
Syndication for corporate loans is an area that can significantly benefit from Blockchain technology.
Different steps of syndication can be executed much faster and in a cost-effective manner.
Maintenance and servicing of syndicated loans on Blockchain technology will be easier to handle
compared to the current scenario of each bank maintaining and manging their own records.
Moreover, loan servicing on Blockchain will be more real time, thereby leading to redundancy of
such data managed by core banking platforms.
PROBLEM
SOLUTION
× Time-intensive
process
 Automated syndicate
formation
× Time-intensive
review
 Embedded regulator
× Lack of technology
integration
 Automated diligence
and
underwriting
× Labour-intensive
process
× Inefficient fund
disbursal
× Default risk
× Delayed settlement
time
× Costly
intermediaries
 Technology
integration
Substantial benefit to Customers and
Financial service firms
 Reduced closing
time
 Servicing
disintermediation
 Reduced
counterparty risk
FRAUD DETECTION
5
176,547 cases of bank fraud
reported till Mar’13 by RBI
More than USD 1.88 Bn lost
by 5 leading Indian Banks b
etween 2010-2013
A whopping
65% of total
USD 5.1 Bn lost owing to b
ank fraud
bank fraud
occur due to
misuse of
technology
across channels
like core
banking, online
banking, POS,
Mobile Banking
& ATMs.
Banking frauds
in India
64% of Bank Risk Managers
expect fraud to rise between
6 to 25%
NPA’s
2012-13 : 183,854
2013-14 : 251,060
2014-15 : 309,409
POTENTIAL BENEFIT
SECURITY
PRIVACY
SCALABILITY
BUILD TRUST
REDUCE COST
ACCELERATE
TRANSACTIONS
HOW
SNAPPER
CAN ADD
VALUE
Blockchain is perhaps most
Blockchain
interesting when it is applied
fundamentally
as a foundation for a more
approach
decentralized economy, where
which
transactions
immutable,
endpoints and include user
Blockchain
trust
are
identity security, transaction
application,
encoded, and scale is not just
and communication security
automation.
secure, but smart.
and the protection of critical
reputation
are
and
provides
to
can
infrastructure
operations
organizations.
a
different
Blockchain
more
software
go
intelligence
that
supports
across
make
accountable,
cybersecurity,
beyond
helps
and
AI
while
hardware
enhance
development,
and
process
HOW
SNAPPER
CAN HELP
SAVING ESTIMATION
50
50
40
30
20
25
30
20
10
0
% OF COST REDUCED
35
CURRENT SCENARIO
Blockchain Will Be Used By 15% of Big Banks By 2017
9 in 10 executives said that their bank is currently exploring the use of
block chain
50% of banks surveyed have already invested in Blockchain technology or
will do so in 2017
Average investment in Blockchain projects in 2017 is expected to be
about $1 million
About 33% of financial company respondents expect to see commercial
Blockchain adoption by 2018.
banks surveyed, about 69%, are experimenting with permissioned block
chains, while 21% plan to use hybrid variants.