Manatt Financial Services Partner Michael Katz was quoted in American Banker about OneAZ Credit Union’s expansion into blockchain technology.
To cater to the growing needs of consumers, credit unions are seeking newer technological options, particularly distribution ledger technology. According to Katz, this technology can reduce transfer and technological costs as well as improve data security by acting as a decentralized system in which each individual node that hosts a shared database can only be accessed with an encrypted key.
Adopting blockchain-supported technologies can greatly improve consumer usability. "There's a lot of opportunity around data verifiability using zero knowledge proof technology to maintain privacy while verifying data and financial data," he said. "Integrating traditional institutions into the ecosystem accelerates the more consumer-friendly and UX-friendly products."
American Banker subscribers can read the full article here.