Blockchain Trade Finance Network Established By Infosys With Seven India-Based Banksbr>
Indian tech giant Infosys has partnered with seven major domestic banks to create a blockchain trade finance network.
The trade finance network, called India Trade Connect, has been formed in partnership with Axis Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank, and Yes Bank. The network is being used by the banks to run a successful pilot of Finacle Trade Connect, a blockchain solution developed specifically to address the trade finance process requirements of banks. The network is agnostic to underlying blockchain infrastructure such as Hyperledger, Corda, ethereum, and bitcoin.
India Trade Connect is designed to digitize trade finance business processes, including validation of ownership, certification of documents and making payments, while working on a distributed, trusted and shared network. It also allows for instant transfer of messages and documents between the parties involved in a completely secure manner, reducing lifecycle turnaround time. The network will be used to collect bills, issue and verify letters of credit, and open new accounts for trade.
Sanat Rao, Chief Business Officer, Infosys Finacle, said digitization of trade finance processes using distributed ledger technology (DLT) offers immense potential to eliminate the friction, cut costs and increase revenue through new business products that are now viable using modern technologies.
“Like any innovative technology, the usage of blockchain-based applications will gradually increase from early adopters to others who will join based on proven and tangible benefits,” said Rao.
Varun Bakshi, Head -Trade Products at RBL Bank, said that a wide range of industries in India, including banking and financial services, are customizing blockchain technology for multiple business uses and to make processes more efficient, secure and transparent.
“The collaboration with the blockchain-based trade network will enable RBL Bank to automate processes and improve domestic and cross-border services in the areas of payments and remittances, global trade finance, clearing and settlement, digital identity, assets and contracts, all on a real-time basis,” Bakshi.