Demonstration of Private Blockchain in Account Data Recording for Microfinance by Infoteria and Tech Bureau
Infoteria Corporation and Tech Bureau Corporation have successfully transferred loan and deposit account data in the main system of BC Finance, a microfinance institution in Myanmar, to mijin, the private blockchain placed on Microsoft Azure using ASTERIA WARP and mijin adapters. This has verified that ASTERIA WARP and the private blockchain mijin are applicable in the operational process of microfinance and the private blockchain technology is applicable to account data recording.
All transaction histories of active accounts at a branch of BC Finance were recorded in the private blockchain mijin using ASTERIA WARP and mijin adapter. BC Finance assigned a total of three accounts, including one loan account and two savings accounts, to one customer. It is planned that an experiment will be carried out for concurrent and consecutive operations over a certain period of time. This is scheduled to begin in the first half of July and continue for approximately six weeks. The development of an application that enables data writing and viewing from clients to mijin is said to be under consideration.
The number of bank accounts in Myanmar is currently only approximately two million for a population of more than 50 million, and bank services are available only to the wealthy – a small portion of the population. Microfinance provides financial services such as loans and deposits to a broader segment of the population, and so plays an important role in supporting Myanmar’s economic growth. Myanmar has achieved 7-8 percent economic growth since its democratization in the spring of 2011, and in the spring of 2016, the military government came to an end, encouraging the lifting of economic sanctions imposed by the U.S. Such factors are expected to facilitate further growth, and a significant increase in the number of BC Finance customers is expected.
While the current system means rising costs of data management as the number of users grows, the introduction of the blockchain technology enables the safe and low-cost operation of account data. Infoteria and Tech Bureau are focusing on the promotion and penetration of blockchain technology. The two companies plan to develop this alliance on a global scale by applying the results of this experiment to other countries.