Obuv Rossii Issues Over 300 ths. Installment and Cash Loan Contracts Using Blockchain
Obuv Rossii Group, the only publicly traded company in Russian fashion-retail, sums up the first results of the project connected with introduction of a blockchain technology in the Group’s business processes. Over the period from May through October, the Group processed more than 300 thousand installment and cash loan contracts using blockchain. The technology proved its effectiveness, the company is considering its replication in other business processes: accounting and CRM (coalition loyalty systems).
Obuv Rossii was one of the first companies in Russian retail to implement the blockchain technology in May 2018. The main challenge the Group is solving is the protection of the personal data of clients who use the services of installment payments and cash loans. All data about the interaction with customers is encrypted and stored in a distributed manner in three data centers of the Company: in Novosibirsk (central data center), Khabarovsk and Moscow. Obuv Rossii implemented the project on its own, without using any external platforms. It developed a solution together with its constant IT-partner, InfoSoft. The technology was integrated in the company's IT system and was adapted to the 1C system where all business processes of the Group are automated.
"There were no unauthorized changes during the period of the project. Thus, we have solved the main task. In addition, the technology does not affect the response time of our IT system; none of the business processes slows down. — IT Director of Obuv Rossii, Dmitry Karpenko, comments. — We have studied the technology in detail and see the possibilities for its replication in other business processes. At present, blockchain is a new technology, there are few examples of its introduction on the market. However, we are confident that after a while it will be widely used and will become a normal business practice. Then the companies that will have already had experience in using it, will have a competitive advantage.”
Adoption of the blockchain technology became possible due to the available infrastructure: three data centers that store distributed data. In addition, in 2018, Obuv Rossii transferred its entire retail network to the new “Installment 2.0" IT platform to support the financial services. This platform is not technically bound to the head office allowing more flexible customization of parameters for campaigns and personalization of offers for company's clients. “Installment 2.0" made in possible to introduce blockchain for personal data protection. Due to the new platform and blockchain, the speed of contract registration increased, and the time of making a decision on a loan or installment decreased. The procedure of controlling employees who register contracts in the regions has become simpler.