One of the biggest banks in Russia’s private commercial sector Alfa-Bank JSC has announced a collaboration with Waves to engage with its services. As a result, the company intends to make use of blockchain-based applications to automate payment systems for its customers. Specifically, freelancers will be able to provide smoother functions with the aid of blockchain technology.
Notably, the new service will cover the entire process of registration and remuneration, including payments settlement, income registration and tax payments. Denis Dodon, director of Alfa-Bank’s research and development center, highlights the importance of the new blockchain-based service. It will serve to enable freelancers to get direct remuneration through any bank of their choice.
“DLT and embedded smart contracts with an end-to-end integration into the banking core settlements and clearings system allows to effect automatic formation of payment instructions […] with direct transmission of payment instructions via DLT to cards and bank accounts of self-employed in any bank,”
Alfa-Bank customers will benefit from the new blockchain-based payment system while the Bank anticipates seeing an increased customer base. Through the use of a decentralized blockchain-based technology, and smart contracts, the bank promises a secure, and seamless payment system.
Apparently, two apps are split into the latest Alfa-Bank service. The first is the Alfa.Corporate app and the other, My Income app. The former focuses on business, and the latter for people. The new Alfa banking services will be a big boost to the Fintech industry. As a result, it will increase consumer expectations and overall protection, said Igor Kuzmichev, chief commercial officer at Waves Enterprise.
Alfa Bank Venture into Blockchain
Alfa Bank has become a valued financial institution both in Russia and Ukraine with approximately 30 years since its establishment. Alfa-Bank has invested aggressively in emerging technologies, including artificial intelligence and blockchain technology. The aim is that engaging in newest technology keeps the company ahead of its rivals.
An intelligent voice recognition system was launched earlier this year by the bank. The Bank has thus increased its generation of revenue from smart customers on the voice analysis framework.
In addition, the bank has collaborated with leading industrial players to further streamline the payment system. One of the innovation was that of Mastercard Inc’s popular collaborations (NYSE: MA). The collaboration initiated the development of AlfaPay bracelets with a PayPass-based integrated debit-based bank card.