Bengaluru-based fintech company Signzy has partnered with Pune-based blockchain startup Primechain Technologies to co-develop AI-led smart banking solutions for banks and financial institutions.
The companies said that their first pre-integrated solution is expected to be launched by December 2019. It aims to fast-track the digital transformation of banks and financial institutions in India and around the world.
The companies’ smart banking solution will integrate AI and blockchain technologies to automate and fully-digitize back-office operations. It will allow banks to achieve efficiencies in operations and simultaneously deliver a superior customer experience across a range of products: loans, insurance and retail banking services.
Signzy And Primechain: The Synergies
Founded in 2015 by Ankit Ratan, Ankur Pandey, and Arpit Ratan, Signzy currently offers a digital onboarding solution for banks, NBFCs, and other financial institutions. It uses AI and blockchain to provide smart e-verification and risk prediction and aims to simplify and secure digital regulatory processes. Its applications are in banking, insurance, mutual fund, payments, and cryptocurrency.
“This partnership combines our respective leadership in artificial intelligence and blockchain-based digitalization technologies targeted at the BFSI industry. Together, we aim to develop and launch integrated solutions that can radically transform the way banks and NBFCs operate and serve their customers,” said Ankit Ratan, cofounder and CEO of Signzy.
Shinam Arora-led Primechain Technologies was founded in 2016. It is a global blockchain startup that also operates the BankChain community of banks. BankChain is an alliance of banks formed in February 2017 to explore, build and implement blockchain-based solutions. The BankChain community has 37 members.
It also offers Primechain-MONEY, the global blockchain for invoice discounting and debt instruments and Primechain API which enables developers to add blockchain power to their code in minutes.
Shinam Arora, founder and CEO of Primechain Technologies said, “Banks and NBFCs today have at least a thousand discrete back-office processes, which explains why digitization and automation of the back-office have not yet picked up. Primechain and Signzy’s smart banking solution is being developed precisely to solve this problem through a plug-and-play product.”
Blockchain: The Awaited Revolution
Worldwide spending on blockchain solutions is forecast to reach nearly $16 Bn by 2023, according to a new update to the Worldwide Semiannual Blockchain Spending Guide from International Data Corporation (IDC).
The report expects blockchain spending to grow at a robust pace throughout the 2018-2023 forecast period with a five-year compound annual growth rate (CAGR) of 60.2%. Blockchain spending in 2019 is forecast to be $2.7 Bn, an increase of 80% over 2018.
According to Blockchain Report 2019 by NASSCOM, the adoption of blockchain technology in India is experiencing rapid growth and investments in blockchain-based projects have touched over $20 billion across various industries.
The report further states that many Indian state governments, like Telangana, Kerala, Karnataka, Andhra Pradesh, and Maharashtra are supporting blockchain startups and projects.
A recent report by the Steering committee on fintech, submitted to the finance minister, said that 22 banks are using blockchain and have been using smart contracts. “The tamper-evident and the tamper-resilient nature of blockchains, as well as the participant dependent consensus algorithm for validation of transactions does away the need for a third-party intermediary to validate a transaction, as well as the risk of duplication or malicious change in a trail of records,” the report said.