Alfa-Bank, one of the largest private commercial banks in Russia, is exploring blockchain technology in its services for freelancers.
According to a December 1 announcement, Alfa-Bank will use blockchain-based applications to automate services for freelancers and self-employed workers. Based on the Waves Enterprise blockchain platform, Alfa-Bank’s new service covers the entire registration and remuneration process for self-employed workers, including settlement of payments, registration of income and payment of taxes.
Denis Dodon, director of Alfa-Bank’s research and development center, told Cointelegraph that the new blockchain-based service allows freelancers to earn direct remuneration through any bank:
“DLT and smart contracts embedded with an end-to-end integration into the bank’s basic settlement and settlement system enable automatic formation of payment instructions […] with direct transmission of payment instructions via DLT to cards and bank accounts of self-employed workers in any bank. “
The new service includes two applications, including the “Alfa.Corporate” and “My Income” platform focused on business for individuals. Waves Enterprise chief commercial officer Igor Kuzmichev said Waves Enterprise’s blockchain technology provides secure data exchange between the bank and a company, as well as transparent and immutable data storage.
Kuzmichev noted that Waves Enterprise acts as a primary tool for the bank’s so-called “Bank-as-a-Service” approach:
“Thanks to the fundamental characteristics of the blockchain – transparency and immutability of data – the new banking services can now be developed alongside the customer but not in the environment of the main banking system. This approach greatly increases time to market and introduces new developers to the fintech ecosystem. “
Kuzmichev said 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 compatible banks in Russia. In early November 2020, Alfa-Bank became the first Russian bank to join Contour, a DLT platform linking global financial giants such as HSBC, ING and Citi.