Alfa-Bank, one of the largest private commercial banks in Russia, is exploring blockchain technology in its freelance services.
According to the announcement on 1 December, Alfa-Bank will use blockchain-based applications to automate services for freelancers and the self-employed. Alfa-Bank’s new service, based on the Waves Enterprise blockchain platform, covers the entire process of registration and remuneration for self-employed persons, including calculation of payments, accounting of income and payment of taxes.
Denise Dodon, director of Alfa-Bank’s research and development center, told Cointelegraph that the new blockchain-based service allows freelancers to receive direct bonuses through any bank:
“DLT and smart contracts, including comprehensive integration into the basic bank clearing and settlement system, allow automatic setup of payment instructions […] with direct transfer of payment instructions via DLT to cards and private bank accounts – works in any bank. ”
The new service consists of two applications: “Alfa.Corporate” and “My income” for individuals. Igor Kosmichev, Chief Commercial Officer for Waves Enterprise, said that Waves Enterprise’s blockchain technology provides secure data exchange between a bank and a business, as well as a transparent and unchanging data warehouse.
Kosmichev noted that Waves Enterprise is the main instrument of the so-called Bank as a Service approach:
Thanks to the main blockchain functions – transparency and data stability – it is now possible to develop new banking services on the client side, but not in the basic banking system environment. This approach significantly reduces time to market and attracts new developers to the financial technology ecosystem. ”
Kuzmichev said the target audience for the new service is individual entrepreneurs, such as taxi drivers, cleaning and repair services, teachers and others.
Alfa-Bank has become one of the most blockchain-friendly banks in Russia. In early November 2020, Alfa-Bank became the first Russian bank to join Contour, a DLT platform that brings together global financial giants such as HSBC, ING and Citi.