Bank considers blockchain benefits
SBS Bank is keeping a watching brief on cryptocurrency and blockchain technology as it looks to future banking trends on behalf of its customers.
The potential use of digital banking technology was just one of the several questions put to SBS chief executive Shaun Drylie at the SBS annual meeting at the Kelvin Hotel yesterday.
In simple terms, cryptocurrency is money that only exists digitally or virtually. Blockchain is the technology that enables secure information sharing online, which makes cryptocurrencies possible.
Drylie said there was some real value in blockchain as a technology.
‘‘We think, and the common consensus is, that it has real merit.
‘‘Cryptocurrencies, we’re not too sure, and if you look at the volatility of cryptocurrencies that would suggest the market is not too sure as well.’’
SBS was focusing on further improving technology to the point that people would be able to open up a term deposit online, Drylie said.
For many people outside of where the bank had branches, it would help create a reach for the company to bring people in who wanted to bank with SBS.
Creating a credit card for its members was still a focus so they could bring all their banking together with SBS. That would come later in the year, Drylie said.
The bank was also going continue to improve its internet banking services.
Chairman John Ward said he considered the operating surplus of just over $35 million to be a satisfactory result given the market and considering there was nearly $1m in costs associated with the acquisition of the Warehouse Group Financial Services.
To get the surplus near to where it was last year at a record nearly $37m and increasing over the previous years was a testament to the executive group, Ward said.