IBM, as per a recent press release statement, announced entering into a partnership agreement with CULedger, a credit union service organization (CUSO, on a blockchain-based solution offering for credit unions.
The said IBM, CULedger partnership, is anticipated to bring in the permissioned blockchain technologies to expand the reach of credit unions to a wider range of new members, especially the SMEs (small and medium-sized enterprises) that are lacking access to financial services.
With a permissioned blockchain network, all credit union members can share services, to further improve identification authentication, regulatory KYC (know your customer) compliance, lending, and payments.
According to John Ainsworth, CEO and president, CULedger, an ideal approach to ensure financial innovation in the credit union industry is to have a cooperative model, which would improve the member experience while benefitting all credit unions.
According to Marie Wieck, general manager, IBM Blockchain, the blockchain-based solution will boost cooperation among credit unions, allowing receiving shared value by quickly exchanging sensitive data in a permissioned, individually controlled, and transparent way. This decentralized blockchain approach puts the customer in charge of their own identity.
Furthermore, credit union members all around the world will have access to a digital credential, called “MyCUID” that adheres to the privacy guidelines supported by the Sovrin Foundation. With “MyCUID” credential, members can transact with any credit union on the network.