Italian Banks Start Exchanging Interbank Transfer Data On Corda

85% of Italian Banks started exchanging interbank transfer data on R3’s Corda blockchain in order to speed up the process of double-checking transaction logs so let’s find out more in our cryptocurrency news sites.

The head of innovation at the Italian Banking Association said that the interbank reconciliation process and the technology underlying the exchange data has to change. Reconciliation takes a lot of our time and was quite unpredictable as the average time for reconciliation was between 30-50 days. On Corda, reconciliation is completed in one day. The Interbank Agreement from the Italian law governs interbank transfers that were passed in 1978 and describes the process of banks sending physical tapes and once the agreement got updated in May 2019 includes data standardization. Italy set a new window between March 1 and October 1 in 2020 for integration to that standard and a blockchain that banks could use and follow the new rules.

NTT Data, the information technology company designed the network and bank technology company SIA operates it. The project is now in its second phase with about 85% of Italian banks or 55 total using the platform share interbank transfer data and the association expects to have 70 to 100 banks on the platform:

 “The benefit is related to the new standardization more than the technology itself. It’s like the rhythm you set on your metronome that sets a [faster] timeline.”

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Each bank had its own software for exchanging data that was related to interbank transfers according to Demetrio Migliorati who is the head of the blockchain at Banca Mediolanum. Using Corda for data exchanges between banks will bring fiat between banks on blockchain:

 “If we failed in this process, the worst thing that could happen was to have a problem in the information exchange between banks. Clients are not affected, the companies are not affected. It was a natural sandbox.”

The association considered a centralized database as opposed to Corda but was not open to having the banks keep the data on separate ledgers at every bank. Experimenting with small data exchanges between banks will allow Italian banks to experiment with other use cases as others also started experimenting with the know-your-customer information of credit on Spunta:

 “If we want to do something new for Spunta, we change it immediately and it is changed for all banks.”