May • 2018
The Wall Street Journal highlights Global Loyalty Network
We would like to share an article that has been released on the Wall Street Journal 25th of May. 2018.
Virtual currencies are becoming the preferred way of making transactions in the emerging “cashless” society. New payment technologies even let game players conduct real-world transactions while wearing virtual reality headsets.
The variety of digital currencies and platforms has created a need to enable transactions across points, miles, coupons and so on. KEB Hana Bank, one of Korea’s largest banks and a pioneer in digital wallets, is developing a network to do just that using blockchain software and cloud services.
KEB Hana Bank’s Global Loyalty Network will let banks, retailers and other businesses participate in a centrally managed network that provides a seamless experience.
With 940 offices and branches in 25 countries, KEB Hana Bank has been laying the groundwork for the Global Loyalty Network since last year, when it hosted a meeting of early and prospective partners. The consortium has grown to more than 20 banks and merchants in China, Japan, Taiwan, Thailand and other Asian countries. The network will be extended to the U.S. and Europe.
“Customers all over the world will be able to use the currencies they have selected as a method of global payments.” says Han Jun-Seong, deputy president of parent company Hana Financial Group. Han is also the group’s chief future innovation officer, a unique role that highlights the importance the company puts on driving what’s next in banking and financial services.
The plan is to develop a network that enables multi-currency payments and funds transfers, exchange and redemption of coupons and gift cards and the ability to earn points, miles and other loyalty-program benefits.
As a first step in the rollout of the Global Loyalty Network, KEB Hana Bank launched an online “coupon mall” in February. The mall offered deals and discounts in seven languages to visitors of the PyeongChang 2018 Winter Olympic Games. A similar offering is planned for the FIFA World Cup soccer tournament, taking place in Russia in June and July.
Next on the Global Loyalty Network roadmap is to create a digital asset exchange in the second half of this year, followed by a smart wallet and support for cross-border payments.
Consumer behaviors and expectations are changing. Banks and retailers have little choice but to adapt. The Global Loyalty Network, Han says, will provide a platform for doing so by combining the strengths of traditional banks, —global infrastructure, liquidity, consumer trust—with the strengths of retailers, such as their loyalty programs and established brands.
Hana Financial Group is partnering with Oracle on the technical underpinnings of the Global Loyalty Network. The network will employ blockchain technology to ensure secure, trusted transactions among the dozens of member companies and millions of users.
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