Alfa-Bank, a private commercial bank in Russia, is exploring blockchain technology in its services for freelancers.
It has been reported that the bank will use blockchain-based applications to automate services for freelancers and self-employed workers. Its new service covers the entire process of registration and remuneration for self-employed individuals, including payments settlement, income registration, and tax payments, based on Waves Enterprise’s blockchain platform.
Denis Dodon, the Director of Research and Development Center at Alfa-Bank, said:
“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.”
However, the new service comprises two applications including the enterprise-focused “Alfa.Corporate” and “My Income” platform for individuals.
Igor Kuzmichev, the Chief Commercial Officer at Waves Enterprise, said that Waves Enterprise’s blockchain technology provides a secure data exchange between the bank and a business as well as transparent and immutable data storage.
“Thanks to blockchain core features — data transparency and immutability — new bank services can now be developed at customer’ side but not in the core banking system environment. This approach significantly boosts time-to-market and brings new developers into the fintech ecosystem.”
Also, Kuzmichev said that the new service’s target audience includes self-employed workers such as taxi drivers, cleaning and repair services, tutors, and others.
Alfa-Bank has emerged as one of the most blockchain-friendly banks in Russia.
Thus, in early November 2020, Alfa-Bank became the first Russian bank to join Contour, a DLT platform connecting the world’s financial giants like HSBC, ING, and Citi.