Blockchain’s varied applications are becoming more valuable for global banking institutions with each passing day. Yesterday, Polish retail banks rolled out a blockchain-based consumer data platform produced by the Polish Credit Bureau, also recognized as Biuro Informacji Kredytowej, or BIK.

BIK, the biggest credit bureau in Central and Eastern Europe, has allowed banks in Poland to transfer notifications of commissions and fees changes on the blockchain through its new document management product.

Polish Credit Bureau and Billon were developing the platform since 2018

Produced in association with Polish-British fintech firm, Billon, the BIK Blockchain Platform has been in progress since the project was first declared in May 2018. The companies unveiled news of the platform’s launch in separate statements on April 16.

According to a statement by Billon, the primary objective of the BIK Blockchain Platform project is to reduce paper-based client notifications by digitizing the data and reporting it on blockchain to improve security. According to the firm, the combined developed system entirely complies with the European Union’s financial records-related regulations, including the European Union’s MiFID II and GDPR.

Enhancing data security and access features

By originating the platform, the Polish Credit Bureau and Billon aim to give a more reliable alternative to conventional documentation management tools such as e-mail and internal banking communications, as well as paper delivery, Billon noted.

According to the BIK, the blockchain technology employed in the platform assures an enhanced level of security. Documents are spread across several network nodes, with each document having its unique address. “These features guarantee high resistance to potential failures, as well as reduce chances of undesirable interference of stored documents,” the BIK said in a statement.

Additionally, the new blockchain-powered data system is intended to expand data access features for both banks and consumers significantly, the BIK maintained. According to the bureau, the platform enables users to access all document history with the bank. This is achieved through a blockchain-integrated access tool named the BIK Portal.

BIK CEO, Mariusz Cholewa, emphasized that the launch of the BIK Blockchain Platform marks the first step of the product’s commercialization. He continued:

“This version eliminates the need for paper notifications. Further versions will focus on streamlining complex multi-party processes and expand to other market sectors in Poland.”

Several Polish banks have begun exploring with blockchain technology for improving documentation. In mid-2019, the Warsaw-based Alior Bank started to utilize the public Ethereum (ETH) blockchain to verify its client documents. Earlier, another major Polish bank, PKO Bank Polski, associated with a blockchain company, Coinfirm, to originate a blockchain-based verification system for bank documents.