At London's Level 39 technology centre, UBS is working on a new project using the blockchain technology, research by finews.ch showed.
UBS clients are familiar with the so-called «Key Points», the currency UBS uses to reward customers for their loyalty. The technology used is fairly traditional: UBS is printing the number of points on solid paper and sends them to its customers in an envelop. They then use the stamps to buy whatever is after their liking.
Meanwhile, the biggest Swiss banks wants to move the principle of the «Key Club» into the digital age.
At Level39, Europe's largest technology centre for fintech solutions, UBS operates its own laboratory. A team of ten techs under the guidance of Alex Batlin is developing the blockchain technology, which is also used by Bitcoin, the digital currency. Some experts say that blockchain will revolutionize the financial system.
Crypto Tokens
Batlin is now working on a loyalty program based on crypto tokens. The points earned by customers receive a code containing the essential information and can be traded using the blockchain technology.
The experiment helps the bank gain valuable experience with the technology, using a crypto-currency system in a non-regulated environment., UBS confirmed.
Experimental Phase
The tests with the crypto-tokens may yet be of benefit to the existing loyalty programs. «Using crypto tokens for a loyalty program could simplify the administration and provide users with additional functionalities», UBS told finews.ch.
The UBS client won't soon be able to pay for a ski pass using «Crypto Key Points» soon. «UBS currently does not plan to launch this system for its clients, as the crypto loyalty programme is just an experiment», the bank clarified.
