Bankia, in collaboration with Finweg, has submitted a project to the first call for the controlled test space, known as sandbox, for the digital transformation of the financial system promoted by the Ministry of Economic Affairs and Digital Transformation, through the General Secretariat of the Treasury and International Finance.
The project presented by Bankia and Finweg involves the launch of a new digital payments platform that will be based on an innovative model of tokenization of transactions with blockchain technology.
Specifically, it is an electronic payment instrument suitable to be considered with the same status of security as that currently recognized in commercial transactions to checks and promissory notes.
The strategic objective is to offer the corporate market and its financial providers a platform to enable them to transform their payment, cash flow management and liquidity management processes.
Bankia’s Corporate Director of Innovation and Cybersecurity, Ignacio Cea, stressed that “the sandbox is a very good opportunity for the evolution, improvement and innovation of the financial sector in Spain and Europe, as well as having the advantage that throughout the process those responsible for the projects will have the collaboration of the various supervisors, who will analyze the feasibility of the projects and resolve doubts about the sector’s regulations through a direct communication channel”.
“In this context, Bankia is committed to projects that aim to revolutionize the financial system through the digitization of services that add value to customers, such as payment systems for SMEs and companies, supported by the most advanced technology,” added Mr. Cea.
In this first call, the period for submitting applications began yesterday, Wednesday, January 13, and ends next February 23. Bankia plans to submit more projects in the coming weeks to this first call, for which it has collaborated with fintech entities of great Spanish and European relevance. In addition, CMS Spain and Finnovating have provided advice for the preparation of applications and explanatory reports.
As explained by the Ministry of Economic Affairs, with the implementation of the financial sandox, Spain joins the countries at the technological forefront that have similar systems to accompany the digital transformation of the sector, thanks to a controlled space that will allow the implementation of technological projects of financial innovation within the legal and supervisory framework.
Bankia and Finweg cooperation
Bankia has been collaborating with Finweg since 2018, when it was a finalist in the IV edition of ‘Bankia Fintech by Innsomnia’, the entity’s startup accelerator, and successfully implemented a proof of concept in the bank that has allowed to verify the functionality of the full cycle of 100% electronic promissory notes and checks.
In addition, through the ‘Bankia Fintech Venture’ fund, last year the bank acquired 20% of Finweg‘s capital, an operation with which the entity showed its support for entrepreneurship in services that are part of its business, such as payments and relations between companies, but which involve a disruption in terms of the technology used, the service proposal and the new business models that may arise.
‘Bankia Fintech Venture’ supports the promotion of innovative culture and is a tool to channel the financing needs of startups so that they can develop services related to innovation and technology, which are highly complementary to the core activities of the bank.
Finweg has developed a platform to manage Payment Agreements on blockchain technology that allows the management of Payment Commitments and Collection Rights with the participation of all parties involved, providing transparency, security and immutability of transactions. The platform is deployed on Oracle’s Cloud infrastructure, which allows rapid deployment, complying with the regulatory and security requirements of financial environments.