Alfa-Bank to Offer Blockchain-Based Services for the Self-Employed People and Freelancers

Alfa-Bank is one of the largest private commercial banks in Russia which is exploring blockchain-based services for freelancers and self-employed individuals. According to a December 1, 2020 announcement, the bank will adopt blockchain for automating services based on Waves Enterprise’s blockchain technology. New services will suffice for the entire registration process and remuneration for self-employed individuals which will include payment settlement, tax payments, and income registration as well.  

The director of Alfa-Bank’s R&D centre, Denis Dodon, stated that this new end-to-end blockchain integration will enable freelancers to get remuneration directly from any bank. 

There are two applications in the new service that include ‘Alfa Corporate’ and ‘My Income’ platform for people. Chief Commercial Officer of Waves Enterprise, Igor Kuzmichev, said that the enterprise’s blockchain technology provides a secure exchange of data between banks and businesses and maintains transparent and immutable data storage. The officer’s statement further said that the company will serve as a primary tool for the bank’s “Bank-as-a-Service” approach. 

Kuzmichev also mentioned that data transparency and immutability features of the blockchain technology will assist the development of new bank services at the customers’ ends and not in the core banking system. This will also bring new fintech developers in the market. 

The new service is targeted at freelancers and self-employed people like taxi drivers, cleaners, repair services, tutors, and the like. 

Alfa-Bank is Russia’s one of the most blockchain-friendly banks. It became the first- ever Russian bank to connect with giants like HSBC, Citi, and ING. This new blockchain integration will bring a lot of convenience for the self-employed and freelancers, but is it another offering for the fraudsters?