The Italian Banca Mediolanum has used three blockchain platforms to notarize the 2019 DNF-Consolidated Declaration of a Non-Financial Nature.
This document outlines the activities of banks on environmental, social, personnel, human rights and anti-corruption issues.
In the case of Mediolanum, the DNF was written in two versions, Italian and English, and was notarized on the Ethereum, Bitcoin and EOS blockchains to demonstrate authenticity and transparency.
Blockchain has been chosen as a solution able to guarantee traceability and security, as well as transparency, making the document accessible to anyone who wants to consult it. The information is therefore made available to customers, shareholders, suppliers and institutions.
The Consolidated Declaration of a Non-Financial Nature summarizes what has been done in terms of sustainability. In particular, Banca Mediolanum has based its actions on six factors:
- Governance and compliance;
- Responsibility towards the customer;
- Social responsibility;
- Environmental responsibility;
- Responsibility towards human resources;
- Economic responsibility.
Banca Mediolanum claims to have pursued its commitment in terms of sustainability. The 2019 financial year ended with the best economic result ever: a net profit of 565 million euros, an increase of 121% compared to the previous year.
In addition, performance fees of 425 million euros were generated. This enabled an extraordinary bonus of 2,000 euros to be paid to the 2,900 employees and 5,000 family bankers, thus giving due recognition to human capital.
In terms of sustainability, new policies were issued, analyzing also non-financial risks linked to environmental impact.
Banca Mediolanum and the use of the blockchain
But why insert all this information on the blockchain? Oscar di Montigny, Chief Innovation, Sustainability and Value Strategy Officer of Banca Mediolanum, explains:
“The adoption for the second year in a row of this notarization process and the use of three different blockchain infrastructures marks a new frontier for the Group in financial innovation at a national level. The Group confirms its position as a company at the forefront of innovation issues with priority on sustainability and transparency, with respect for all our stakeholders and the relationship of mutual trust”.
Italian banks and the blockchain
Banca Mediolanum is one of about 100 banks that are experimenting with the use of the blockchain with the Spunta Banca DLT project. This is an initiative of ABI (Italian Banking Association) to increase the use of blockchain in the banking sector, in particular to address the issue of banking reconciliation.
This shows that blockchain is a technology that is proving to be particularly useful in the sector, both in terms of transparency and the relationship with clients.