BNI Uses JP Morgan Blockchain Technology for Remittances

Bank Negara Indonesia (BNI) applies technology blockchain owned by JP Morgan to simplify the data validation process in remittance transactions to Indonesia from abroad. This service can be used for sending money from Taiwan to Indonesia.

This validation process uses Confirm, a global account validation application that is part of the network JP Morgan link. Overseas sending banks can ask BNI for confirmation of the recipient's details before the money transfer transaction is executed.

After BNI validates the account, the payment order can be sent via the PayDirect network from JP Morgan and BNI channel it to the beneficiary's account at the destination bank.

According to banking regulations in Indonesia, the number and name of the account holder listed when sending funds must match the data in the receiving bank. Through this collaboration, BNI wants to ensure efficiency and minimize the possibility of transactions being returned due to discrepancies in recipient data.

Director of Treasury and International BNI Henry Panjaitan said, ease of transactions is the main key to obtain customer satisfaction and loyalty. According to him, cooperation with JP Morgan can support efficient and effective banking transactions for customers, especially to support remittances to Indonesia from migrant workers abroad.

“This is one of BNI's main priorities, and we want to expand the availability of digital solutions to support customers' needs in conducting easy and safe banking transactions. Both on a domestic and international scale," Henry explained as quoted from Cash.

The Confirm application developed on the Liiink network has been introduced since late last year. The application was developed taking into account the input from the members of the network to meet the needs of the global payments ecosystem.

Liink is part of Onyx, a JP Morgan business unit launched in 2017 which was previously known as IIN. Now Liink has 400 participants consisting of financial institutions and corporations, including 27 of the world's largest banks, covering 78 countries, with 100 already running.

“We are happy to see the Confirm application can help clients such as BNI to increase transactions between countries. We have always listened to our clients and will continue to deliver next-generation products and services to Liink participants in the future,” added Christine Moy, Global Head of Liink Onyx by JP Morgan.

Previous, three years ago, BNI has revealed the initiation of implementing blockchain technology through a joint study with PT Adamobile Solutions Networks. Trade finance and remittances will be the first BNI business units to use this technology.

At that time, BNI officials said, blockchain in the remittance business was useful for data exchange real-time and safe because the data is encrypted to all members of the blockchain.

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