#Provide reliable and secure channels for the transmission of financial information
#How can we confirm the information provided in the payment instructions?
Suppose you want to transfer funds to your client from a bank account opened in any country or state. The usual procedure is for the payee (beneficiary customer) to send a payment instruction to the payer (ordering customer) with the beneficiary's full name (or company name), account number, IBAN and other information necessary to have the transaction completed.
The question is, how can the payer check the reliability of the information contained in the payment instruction provided by the beneficiary customer? Who is to guarantee that the beneficiary customer didn't provide his private account number instead of the business one, or that he didn't change his name or company name with the intention of manipulating cash flows?
#Avoid errors in the money transfer process
This information cannot be confirmed by the payer's bank, because the payer's bank doesn't have this information. It can only be confirmed by the beneficiary's bank, but they will not release any of their customer details upon your request.
On the other hand, forcing the sender to verify the authenticity of the data by himself every time he initiates a transaction, sooner or later, will result in the imposition of serious errors in the money transfer process that can no longer be corrected.
So, what should we do in case we face this situation?
#Lay the foundations of a foolproof security system
The payer must be able to confirm the legitimacy and validity of the information received before executing the transaction. The payment instruction data must be preserved (as originally certified by the recipient's bank) and must not be subsequently changed, lost, corrupted or misused.
We need a fintech solution that guarantees the establishment of a foolproof banking security system and mutual trust between senders and receivers of payments, as well as between clients and banks, thereby reducing the number of errors in the transfer of funds.
This can be achieved by combining two innovative approaches that dive deep into blockchain technology. One is Digital Chip Card Technology and the other is Digital Telegram Service. There is a possibility of their wide exploitation in transaction banking and related services such as H2H (Host-to-Host), SWIFT, cash management and trade finance. See more...
#Step into the future of banking with DCCT, DTS and blockchain
Digital Chip Card Technology (DCCT) and Digital Telegram Service (DTS), together with blockchain technology, aim to provide reliable and secure channels for the transfer of financial information and to prevent its alteration, loss, corruption or abuse along the way.
#When opening a bank account, the client is assigned a personal digital chip card associated with that bank account. At any time, the payer may initiate a transaction and retrieve the transactional digital telegram generated on the remote database server after the transaction has been initiated. The transactional digital telegram is sent to the payer's bank to verify the payer's details and then forwarded to the payee's bank to verify the payee's details. Depending on the results of the verification, the transaction will be either executed or rejected.