Polish Consumer Credit Agency Now Using Blockchain

The largest credit bureau in Eastern Europe is to implement blockchain technology to store and secure customer information.

Credit bureaus gather account information to ascertain the creditworthiness of individuals. They differ from credit rating agencies because these are focused on the creditworthiness of businesses and governments. The Polish Credit Office, or Biuro Informacji Kredytowej, is owned by the largest banks in Poland and tracks approximately 140 million credit histories.

It has signed a partnership with Billon, a fintech company that has its headquarters in London. According to the press release, the two entities have developed a “durable medium of information, defined by EU regulations and directives such as MIFID II and IDD directives.”

The new system was tested by eight Polish banks, which came to the conclusion that Billon’s blockchain could handle approximately 150 million documents every month. This is reportedly sufficient for even the largest institutions to move to paperless customer service.

It has been approved by the Polish authorities and is GDPR-compliant – it is the only blockchain that take the right to erase personal data into account.

Billon is a company that offers what it calls a “civilised blockchain” – meaning that it uses blockchain technology to process fiat currency. It does not see the need for new currencies. Instead it uses ‘E-money’, which is legal tender in the EU according to the E-Money Directive (2009/110/EC). According to its website, it developed technology “to store digital money as encrypted files on a mobile device or in a cloud.”

It received FCA approval in June 2017 and the following month received a 2 million euro grant from the EU’s biggest research programme.

Mariusz Cholewa, President of the Polish Credit Office, said: “Our cooperation with Billon is long-term. We believe that blockchain technology will transform client communications in the financial sector. Our solution will soon be expanded to include electronic delivery with active confirmation and remote signing of online agreements. It is also important that the solution meets legal requirements of a durable medium of information, as well as the EU GDPR requirements.”

Andrzej Horoszczak, CEO of Billon, said: “Our partnership is the start of a true revolution in information management. It is now possible to move away from the constraints of closed central databases to a democratic blockchain-based Internet where every user will be able to control their identity. This solution provides the world’s first GDPR-compliant blockchain platform that streamlines customer service processes and implements customer rights such as the “right to be forgotten”. We’re fixing the problem of consumer data control, creating a level playing field between individuals and corporations. The benefits could affect more than the financial sector, and we anticipate it will soon be adopted by industries such as telecommunications, insurance and utilities. Our cooperation is only the first step to introducing mass blockchain technology use for trusted document management.”