 Hi everyone, I think it works. I think it works, I hope it works. Because the moderator is supposed to talk something and to introduce about ourselves, but it seems that he can't say anything and he can't hear from us. So we think we have to start with ourselves, but they should record ours. Okay, anyway, welcome to Samsung SDS and Shinan Bank session. Thank you, Cliff. Welcome everybody and thanks for joining the session. I'm Kyusung Lee, Head of Blockchain Research Lab in Samsung SDS. Please call me KS during this session because it is simple to call me. I'm leading Blockchain Research Lab and related topics consist of off-chain transactions and blockchain platform technologies, which we are going to discuss in this session. As you see, I'm with Andrew Kim at Shinan Bank. Andrew, please introduce yourself. Thank you, KS. Hi, this is Andrew. I'm a Blockchain Project Manager at Shinan Bank. I briefly introduced Shinan Bank for those who are not too familiar with the company. Shinan Bank is a leading commercial banking in South Korea with strong digital innovation DNA. Ever since 2017, we have been made numbers of blockchain projects to improve the banking process. I'm very excited to share one of those topics with you here today. Yeah, me too, Andrew. In this session, we are going to discuss a blockchain project to automate government policy model. Shinan Bank launched the project last year as a business owner and Samsung SDS, my company, provided blockchain technologies for the project. We will share the experiences that we got through the project. Again, we are very happy to share them with you and the community. So, here is the plan on the second. Andrew from Shinan Bank will introduce the overall project. He will then explain why they chose the blockchain and practical challenges they met when they tried to use it. Then I will explain the specific blockchain technologies to meet business requirements. Finally, we will deliver platform details and benefits. And here now is Andrew Kim at Shinan Bank. Andrew, could you start? Okay, thank you again, KS. So, most of the audience here today are probably thinking right now, so what exactly is government policy loan? Just briefly explaining, it is a type of government loan specific for small and medium businesses, including mom and pop stores to encourage their entrepreneurship and innovation. Unlike other bank loans, money for policy loans comes from government institutions. Banks only act as a distributor of this loan. In this case, money comes from CEMAS, which stands for Small Enterprise and Market Service. CEMAS is the biggest government institution who is funding the policy loan. However, please keep in mind that policy loan is not a single product. Funding institutions could be different depending on the types of the policy loan. After COVID-19, demand for policy loans significantly increased because it has a lower interest rates and more flexible period of return. In the next slide, I will explain how the policy loan used to work before the platform. So, let's imagine you are a best-run owner who needs a government policy loan to pay for the salaries. First, you have to go to the institution office to apply for the hot coffee confirmation letter. The letter proves that you are eligible for the policy loan. The institution check your credit rate, size of sales, number of employees, and etc. And they check if you are eligible or not. After that, you also have to visit the credit guarantor office to get a guarantee approval letter. Just to get these two letters ready, it usually takes a week or two. Once these two letters are ready, now you can finally come to the bank office to apply for the loan. From there, you also need to wait another two weeks to get the loan. As you can see, the process was painful for both customers and a bank. Customers have to make three to four visits to the institution, credit guarantor, and bank. Because there are three branch channels, customers often got confused with the process, and it led to a terrible customer experience. Also, it usually takes 22 days to complete the loan, which is two times longer than the other loans in average. Three channels also mean that there are three different databases. Data input, data exchange, and data reconciliation between parties was all done by manually by hand. Excessive amount of access spreadsheets, relic cups were necessary. The worst part is that most of the data was delivered through emails, phone calls, faxes, or otherwise you have to upload the Excel files on SEMA's website. This definitely led to data discrepancy and privacy issues. Yes, I think it must be very complicated and not efficient at all for both users and institutions. Yes, that is correct. The issues and the drawbacks of the government policy loan was very clear. So, in one word, getting a policy loan was painful. It was too confusing, it was too complicated, and it finally took too much time. Obviously, customer satisfaction was very low than other loans in average. From the bank's aspect, it required too much risk and cost. Moreover, it lacked scalability. If a new loan and new institution want to operate the policy loan, it required excessive amount of IT development and integration. After COVID-19, more customers wanted to get the policy loan, so the needs of the platform was higher than ever. In the mid-2020 last year, the project was initiated with three goals. First, we wanted to unify channels, so customer doesn't have to visit several different institutions. Second, we wanted to cut down the number of visits to one. Third, we wanted to automate the most of the procedures and eliminate the manual work. We concluded that building a blockchain platform is the most effective way to solve these problems. Yeah, I think you made a good choice at the time. We made a good choice, but we knew blockchain was great, but soon we faced a few challenges. No deployment was not easy for banks since we did not have such an experience. Also, system stability was another issue, so we wanted to find a way to use Kubernetes for deployment and management. Lastly, network regulation standard in the bank is very high. We wanted to build a very safe and stable external network to meet this standard with a partner who could solve these problems and who have an experience. Next is why we chose Samsung SDS as a partner. Yeah, thank you again. I agree with Shina's pain points, but in addition to Shina's comments, I would like to share more voices from the customers who want to use the blockchain. The first one is that I know what the blockchain is now thanks to Bitcoin, Ethereum, and NFT, but it is still difficult to use. The second one is similar to the first one. We figured out user wants a simple way to use blockchain. For example, they want to use graphical interfaces. Yes, because we needed a platform, we wanted it to be very easy to use and explain it with graphical interface. Yes, GUI is very important. The third one is like blockchain deployment is hard, but when it comes to operation and network management, it becomes really hard. I think it is because blockchain use cases in real service have increased, so I think that's a good sign. The last one is that users want to maximize benefits from the blockchain. Of course they are. For example, questions I frequently got, what can we do next with blockchain? Or how can they easily expand business with blockchain? So we've decided to develop blockchain technology to provide simple and easy instructions through web interfaces. Also, we decided to utilize Kubernetes for network deployment and management for better services. As a result, on the right side here, here is an example of technology. Not only users can easily control and monitor the network, but also they can expand, expect business expansion through GUI very easily. Okay, let's take one step to understand what the technology is and how it works. The left side we call Next Ledger Manager provides web-based graphical interfaces for users. So users can easily command to the server to configure and deploy the fabric network through the interface. On the other side of the figure, our server part receives a transmission from the client. Of course, in a server, the deployment module here controls Kubernetes jobs. For example, it does creating or managing parts. You can see the peer orderer, I mean, CA parts in the blockchain network. So on the other side, our demonstration module is in charge of configuring and managing blockchain components. Examples are creating channels and adding on OLG or install some chain code. And one good thing is the ability to check the status of all network by monitoring module here. So it's a little bit more detailed architecture, and I don't want to go in detail, but I just want to mention three things. First one is the fabric version. Since last year, we've supported the fabric version to point X, so users can benefit from the last year's fabric features such as enhanced private data collection or chain code lifecycle management. Second is support web-based SDK and wallet. It means that web-based SDK enables web interfaces and browser wallet. However, the browser wallet here is optional, so users can use hardware wallet instead. I mean, if they want. Last one is Kubernetes. Users can take advantage of all features from Kubernetes. It includes network provisioning, high availability, and scaling. In addition, as mentioned, continuous status check for blockchain components are available. So users can complete blockchain network provisioning in minutes. And even though there are some requests for upgrading or changing network configuration, it could be quickly done. In addition, users can deploy network component even in multiple network environments. You know that blockchain consortium consists of many different organizations. Yes. For example, we observed enterprises and banks like you finance sectors want to use on-premise network. That is correct. Banks usually prefer on-premise network rather than clouds. Just for the security issues. I know that there is a regulation for that. Yes, but on the other hand, IT companies may want to use public cloud. So we believe that the hybrid cloud provisioning feature can satisfy participants with different needs. So let's see how it works. So first, we will create a peer. To create a peer, we need a name and date type and a fabric version and order name and some other information. Then put some password and just click. That's done. We just created a peer using Kubernetes. That was easy. Yes. Then we will deploy the chain code. First, the package and the peer nodes to be installed. Then we have to approve it according to chain code lifecycle management. So it is the process of approving the chain code. We need to put some name and some other information to approve and that's done. And the last one is committing the chain code. So that's it. We went through the chain code lifecycle management with graphical interfaces. Just as KS explained, adding a peer node and deploying the chain code was quite easy during the process. After provisioning, users can monitor all blockchain network status. The left figures show the network status. For example, the number of active peers and the height of blocks. The right side is the example of the administrator page of a business owner like Shinhan, excuse me. The page can have more business related features such as the number of applications submitted today but something like that. Yes. This page helps us to monitor the network in a glance. So we use it very often. So we provided this technology to Shinhan as they easily wanted to provision and manage the blockchain network. And Shinhan, I think Shinhan added more blockchain and business features to the platform. Is it right? Yes, it is right. So they built a platform called the government policy long platform. Right? So I think you could explain the platform better. Sure. I will explain how the platform works and how the platform changes the policy long process. On September 2020, which is last year, we finally launched a blockchain-based, more specifically hyperlector-fabric-based government policy long platform to connect data or more participants in real time. Thanks to Samsung SDS next letter and network management technology, the project could be completed smoothly within four months, which is quite short-ended other blockchain projects we have experienced. Now the customer does not have to make several visits. Shinhan, we have signed a consignment agreement with SEMAS so we could issue a confirmation letter on behalf of the SEMAS. Prior to the platform, data of confirmation letter application was delivered to SEMAS only on every Monday and Thursday only. However, after the platform, this data can be delivered on real-time at any day. I'll go through the example where we kick. So as soon as the loan officer at Banking Branch, at Shinhan, input the application data into blockchain platform, SEMAS, they can check and approve the confirmation letter right away through the platform. There is no need to exchange spreadsheet going on between. This allows loan assignment to be operated in real-time as well. The biggest change is that you do not need to email and email Excel's full of free look-ups, as I mentioned. I'll talk about how the automation was possible in the next slide. Okay, so this slide shows the examples of how we use event listener feature to automate the loan process, particularly repayment schedule. For privacy loan, customer has to repay certain amount of loan every quarter. Before the platform, Shinhan and SEMAS, we have our own repayment schedule data. Because data input was done by hand, there was always some issues with data discrepancy. But now there is only one unified repayment schedule data and the platform, as you can see, act as a data breach between Shinhan Bank and the institution. So let's go through the example. Once the request of the loan allocation triggers, the institution's internal batch program through event listener to verify and confirm the allocation data. Then the platform updates this data and creates the payment schedule right away. This allows process to eliminate emailing and unloading of repayment schedule access spreadsheet and some other tedious relookup works. And also, as you probably, everyone here knows, that deleting data is not an easy process when you apply blockchain. We believe that fabric could help us get through this issue. Because this is a loan platform, it has to comply with many different regulations. And then to comply with our guideline, the bank's guideline, the institution, the SEMA skyline, and also GDPR. To solve this issue, we created RQ to isolate PDC data with the letter data. You could understand PDC as a couch DB where you can manually or automatically delete the data. And letter data, as its name implies, it's a blockchain. So you cannot change the data here. Personal data and financial data, because they are private data, they are saved in the PDC while repayment data, they are saved in the letter where you cannot change it. Think RQ as a hash data, hash it's hashed, and it's used for one-time access code for repayment data. This helps us to prevent data abuse and the creation of the data does make us to comply with the GDPR. Once the loan is fully repaid, all data in PDC can be deleted. So finally, here are some of the business benefits we have experienced in the last eight months after the platform launch. We definitely see higher customer status. I mean, it's obvious. Customer visits are now down to one. They don't have to go back and forth and ask the banking branches what they can do. We also integrated confirmation letter application process into our banking mobile app. So it means that customer now doesn't even have to come to the office. They just can apply for the confirmation letter on their mobile phone. Now the time period of loan process is down to 12 days from 20 to days. We also, the Shinan also, enjoys the benefit of the platform ecosystem. Because most of the loan process is automated, as we mentioned in the previous slides, we could cut down 13,000 working hours per year. As a platform success-free once, we see increasing numbers of banks and other institutions who want to join the platform. Two more commercial banks in Korea are now in touch with us to join the platform. Is it really the first use case in Korea for banks to earn such profits wanting the blockchain platform? I think it is very impressive because you just measured the number. Because I know that it is very not easy to find some quantitative outcomes from the blockchain project. And the number is too high. I mean, 13,000 working hours cut down. That's very impressive. Yes, it is. And I would like to add some benefits from the technology. First, users can reduce deployment and configuration costs thanks to dynamic network provisioning. You would know that manual provisioning requires somewhat iterative and complex and error-prone tasks. Second, users can have more network choices. For example, they can use public cloud, hybrid, on-premise, whatever. The last one is related to operations. So operators can easily check the status of networks so they can respond to the emergence, such as lag of resources and service outages. And I like to mention that we also observe resource allocation for blockchain are very important. So, okay. Here are some key takes away you want to deliver. Andrea, could you summarize it? Sure. So, you might think it is inefficient to integrate blockchain into banking service because banking structure is very complicated and it's full of legacy system. We are very aware and we have very experienced that we tried to apply blockchain, but it took too much time and too much risk. With the hyper-retro fabric, next letter and other supporting tools, integrating blockchain into banking system, I think it's easier than ever right now. Just as an example, we showed the government policy goal. I hope you're looking for a service with the multilateral structure business to apply blockchain. This kind of business model will bring you the dramatic changes in both customer and company aspect. Thank you. And from the technical side, blockchain, I would like to mention this one. Blockchain configuration and management are somewhat complex and complicated, but I believe making it easier for users is the key to business production. Yes. Okay, that's it. We hope this session was helpful for both business and technical side. And thank you. Thank you for the joining session and feel free to ask any question. And I wonder that Cliff is online and... Let me just... Yeah, okay. Okay, we have a copy. Okay. So we unloaded the PPP file in the schedule.com. Okay, I thank you. Hi, Julian. Thank you. Oh. Good to hear that. So we unloaded the presentation so you can download it in that page. So thank you. And thank you, Julian. And is there any other question or comments? Oh, yeah. Hi. Good to see you. So there is like one or two more minutes that we can answer your question if you have any. So Julian Golden asked us what is plans going forward? In a bank side, we are now in a talk with the two other commercial banks who want to join this platform. And we're going to charge them with the fees of using the platform. So it'll be probably one of the first case that bank are using blockchain platform to actually awning money. And we went through the legal checks and there's no problem with it. And now we are having... Also we are talking with a few other institutions who want to join the platform. But it just started so we don't... We don't know how it's going to be happen but we will see. So yeah, we will just try to enlarge the platform ecosystem for now. That's good. And from technical side, we will keep increasing... I mean, keep enhancing the technology. So we call the technologies as blockchain management technologies but we will add some more features like dynamic resource allocations. So we think it would help for other blockchain operators or some enterprises want to use blockchain. So that's our plan. And we think it's time's up because it only two minutes left. So I think if we have some questions or any comments, feel free to send us an email to us. And thanks again. How can I enterprise join this initiative? Could you elaborate a little more on this question? You mean how the other banks are joining the platform? In that case, we have an experience with building ourselves. So the two other banks, we are doing the... What's that called? We are consulting them and we are talking with their IT sessions as well. And we have the guideline documents for them to apply this blockchain system. And thanks to the next letter, opening the pyramid and deploying the blockchain is very easy. So that could be done with us. And I don't think we need external IT guys to come and add those. Okay. It might be the last comment. Somebody said... Yes. Okay. Download this PPT in the schedule.com and there is an email for both of us. So if you have any questions or comments, please send us. Please. And I think that's it. Thanks for the joining session. Thanks. You can email with questions. And it was Andrew from Shinan. And Kusang Lee from the Samsung SDS. Okay. Thank you. Bye.