Canadian insurance giant to introduce new technology

Company plans to dip its toe into innovation that could “transform everything we know about banking”

It’s fair to say that blockchain technology has plenty of hype: it has been described as having the potential to transform banking and the way we do business. Now, it’s come to the wealth management sector thanks to a Canadian insurance giant.

According to a report at the Financial Post, Manulife Financial will test out blockchain technology – the innovation used with Bitcoin, the virtual currency.

The technology will feature as part of its wealth management division in the USA, known as John Hancock. The company has announced a partnership with BlockApps and Consensys and it will use this technology as part of the process of taking on new clients.

Blockchain technology had been widely feared by financial institutions. However, now the technology, which is effectively a shared and open network guaranteeing that transactions are valid and eliminating the risk of fraud, is being tested by a number of companies.

The Financial Post report lists, for example, the likes of Royal Bank of Canada as testing the technology as part of its loyalty programs. In addition, RBC, the Canadians Imperial Bank of Commerce and Toronto-Dominion Bank have all joined a consortium to test applications that utilize the technology.