India Trade Connect, a blockchain-based trade network, has been launched by digital banking group Infosys Finacle, in partnership with seven regional banks.
According to a press release Wednesday, Infosys, part of EdgeVerve Systems, has launched the network to run a pilot of its Finacle Trade Connect, a blockchain technology-based solution developed to address the trade finance process requirements of banks. The system will enable increased automation and transparency, while helping efficiently manage risks in trade and supply chain financing operations.
Banks participating in India Trade Connect, named as the winner of the Celent Model Bank 2018 award for Trade Finance and Supply Chain, are Axis Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank and Yes Bank.
The network is designed to digitize trade finance business processes, including validation of ownership, certification of documents and making payments. It encompasses a range of functions including bill collection, letters of credit, PO financing and invoices.
In addition to creating new business opportunities for participating banks, the system aims to eliminate inefficiencies in the existing trade processes so everyone involved in a transaction has a single source of the true position.
This allows banks to make more informed financing decisions, as they are aware of the exact position of a bill as well as the exposure of the corporate with its respective partner bank, said the statement. Additionally, secure instant transfer of messages and documents between the parties involved reduces lifecycle turnaround time.
The company said the network, built on Finacle Trade Connect, is agnostic to underlying blockchain infrastructures, such as Hyperledger, Corda, Ethereum, and Bitcoin.“Blockchain technology offers unprecedented opportunities to transform banking,” said Sanat Rao, Chief Business Officer of Infosys Finacle in the statement.
“Blockchain technology offers unprecedented opportunities to transform banking,” said Sanat Rao, Chief Business Officer of Infosys Finacle in the statement. “At Infosys Finacle, we are committed to reimagining banking and providing a continuous thrust on collaboration with our clients. In pursuit of this, digitization of trade finance processes using distributed ledger technology offers immense potential to eliminate friction, cut costs and increase revenue through new business products that are now viable. We are committed to helping our clients realize the path-breaking benefits of blockchain technology and we look forward to many more collaborations to strengthen this consortium and building other networks across the world.”
“Axis Bank believes in enhancing its customer experience by continuously innovating and leveraging new technologies,” said Anil Agarwal, EVP & Head – Transaction Banking, Axis Bank. “While there have been significant innovations in payments, Trade Finance is now starting to pick up. We are excited about the potential of India Trade Connect initiative to digitize end-to-end trade finance operations and bring about a speedy, transparent and secure experience for our corporate clients.”
“IndusInd Bank has taken multiple initiatives in blockchain and our alliance with Infosys Finacle is another step in that journey, said Ramesh Ganesan, Senior Executive Vice President, Transaction Banking, IndusInd Bank. “We believe that this platform will help us take a quantum leap in digitisation and also improve the processing efficiency of trade transactions. We are keen to leverage the platform to build a differentiated product, deliver a better experience for our clients and are confident that this collaboration will help redesign the way trade and supply chain finance transactions are processed in the country.”