Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)

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Revolutionizing Loan Verification in Banking: The Role of Smart Contracts

Authors
Maruf Ahmed1, *, Luo Song1
1Chongqing University of Technology, Chongqing, 400054, China
*Corresponding author. Email: marufahmed8690@gmail.com
Corresponding Author
Maruf Ahmed
Available Online 14 August 2025.
DOI
10.2991/978-94-6463-811-0_125How to use a DOI?
Keywords
Blockchain Technology; Smart Contracts; Loan Verification; DeFi; Financial Technology
Abstract

The financial industry is evolving with the adoption of blockchain technology, addressing traditional challenges like inefficiency, fraud, and lack of transparency. This paper presents a hybrid blockchain-based loan verification system tailored for the banking sector, combining the security of decentralized networks with the practicality of centralized systems. Our solution leverages Ethereum smart contracts for immutable transaction recording while using centralized backend systems for faster processing and integration with legacy banking systems. The proposed system validates loans based on predefined parameters such as mortgage value, income, and credit score. Performance analysis reveals a transaction validation time of less than a minute, with a cost reduction of approximately 50% compared to traditional methods. By integrating blockchain with user-friendly interfaces and APIs, the system ensures scalability, security, and efficiency, paving the way for real-world banking adoption. This paper discusses the architecture, implementation challenges, and results, highlighting the system's potential to transform loan processing in financial institutions.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
14 August 2025
ISBN
978-94-6463-811-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-811-0_125How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Maruf Ahmed
AU  - Luo Song
PY  - 2025
DA  - 2025/08/14
TI  - Revolutionizing Loan Verification in Banking: The Role of Smart Contracts
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 1147
EP  - 1155
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_125
DO  - 10.2991/978-94-6463-811-0_125
ID  - Ahmed2025
ER  -