HSBC Bank has always been investing heavily on technology. Through the adoption of the most advanced technologies, HSBC Bank was able to bring forth its promise of providing customers with connections to opportunities, enabling economies and businesses to prosper and thrive, as well as help people determine and achieve their ambitions.
This time around, it appears that HSBC Bank has its eyes on blockchain as its next potential growth area.
Stuart Tait who is the regional head and general manager of the commercial banking of the HSBC Asia Pacific Group also said that blockchain has a huge potential in making trade transactions a lot easier and more convenient through special features that enable people to rest assured that their transactions will be secured and quicker. According to Tait, this can take the trade to great heights in the future.
Instead of taking five to 10 days to transfer the (trade) documents, blockchain transactions can be completed within 24 hours.
Tait said that the plan was to invest an amount between US$15B and US$17B in 2019 up until 2021. HSBC Bank believes this will be sufficient for the making way of new technology adoption.
A significant percentage of HSBC's clientele falls under the Asian region. With that, Tait said that Asia is going to be a massive recipient of the bank's investment.
There is no promise that blockchain trade transactions are going to happen in the nearest of time.
According to HSBC Bank, this is because trade transactions involve multiple parties such as sellers, buyers, shipping companies, and many more.
With that, it is going to take a while before their plan to incorporate blockchain will push through. It can take from three to five years before massive adoption takes place, not just because of the technology, but also because some people are not entirely comfortable with this innovation yet.
In this sense, the plan on blockchain is not a matter of ïf it's going to happen.
The question relies more on when it is going to happen.
Right now, all we can do is wait, but the good news is that the journey has already started.
HSBC Bank had reportedly sought bank partners in North Korea for the deployment of a blockchain system called Voltron, which allows organizations and companies to manage their trading invoices through the use of blockchain.
Apparently, this project had already launched dating back to October 2018. HSBC had done so as it worked with seven other banks.
After in-depth and careful planning for this project, now they are at the pilot stage for making this innovation come true.