Awards

2018 BAI Global Innovation Award Finalist

BAI Global Innovation Awards 2018 finalist Royal Bank of Canada

 

Internal Process Innovation

Royal Bank of Canada (RBC) – Canada
RBC Cross-Border Payments Shadow Ledger

The RBC cross-border payments shadow ledger is one of the first Canadian-built and -owned blockchain networks deployed for day-to-day use in the financial domain. The blockchain application is integrated with existing systems and operates as part of the larger technology ecosystem. Architected, designed and developed in-house, it represents a significant milestone in the integration of emerging technology with existing systems.

Modelled as a shadow ledger, it operates in parallel with the existing ledger. The application’s capabilities are targeted towards internal users to enable operational efficiencies and an improved client experience:

–     The application, which operates in real-time, provides operations staff insight into the state of payments, individually and in aggregate, so they can monitor payments flow as well as respond to any exceptional events that they feel would lead to an improved client experience.

–     The application provides insight into critical account balances held with partner banks, a capability that enables better account monitoring and management for this business process.

The application has been deployed as an internal network between RBC U.S. and RBC Canada.

The Problem

Two problems were identified and addressed successfully:

1.Making the flow of payment messages from source to destination real-time and transparent. The driver for this was to improve customer experience by enabling operations teams to detect exceptional conditions early.

2.Making the balance of the Nostro account held at an intermediary bank real-time and transparent. The driver for this was better management of Nostro balances.

The Solution

The RBC cross-border payments shadow ledger is one of the first Canadian-built and -owned blockchain networks deployed for day-to-day use in the financial domain. The blockchain application is integrated with existing systems and operates as part of the larger technology ecosystem. Architected, designed and developed in-house, it represents a significant milestone in the integration of emerging technology with existing systems.

Modelled as a shadow ledger, it operates in parallel with the existing ledger. The application’s capabilities are targeted towards internal users to enable operational efficiencies and an improved client experience:

  • The application, which operates in real-time, provides operations staff insight into the state of payments, individually and in aggregate, so they can monitor payments flow as well as respond to any exceptional events that they feel would lead to an improved client experience.
  • The application provides insight into critical account balances held with partner banks, a capability that enables better account monitoring and management for this business process.

The application has been deployed as an internal network between RBC U.S. and RBC Canada.

The Outcome

Qualitative impacts of the blockchain shadow ledger include:

  • Error-free payment data on the shadow ledger
  • Real-time processing and alerts as opposed to batch driven processing