Infosys Finacle, R3 Complete Global Blockchain Trade Finance Trial

Blockchain, News | September 24, 2019 By:

Infosys Finacle has successfully completed its global blockchain trial in partnership with R3, an enterprise blockchain software firm working with more than 300 organizations across multiple industries.

Finacle is a core banking product developed by the Indian corporation Infosys that provides universal digital banking functionality to banks. It is part of EdgeVerve Systems Limited, a wholly owned product subsidiary of Infosys. In May 2018, the firm partnered with major Indian banks to develop Finacle Trade Connect, a blockchain solution that 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. The solution is agnostic to underlying blockchain infrastructure including Hyperledger, Corda, Ethereum, and Bitcoin, securing banks from technology evolution risks.

In a press release, Infosys Finacle said that 18 banking groups joined the test network of Finacle Trade Connect. The trial simulated both domestic and international trade processes by forming intra-country and inter-country groups. Participating banks conducted trade finance transactions across a multitude of products, namely open account, factoring, bank guarantees, invoice financing and letters of credit. After carrying out more than 400 transactions over the course of 5 weeks, participants reportedly found that processes were faster, more cost-efficient, and maintained trust and security.

“The trial results demonstrate the value banks can unlock with our solution,” said Sanat Rao, Chief Business Officer, Infosys Finacle. “With an emerging technology like blockchain, collaboration and co-innovation is a key to achieve exponential benefits and we are committed to help our clients in their pursuits of transforming trade finance with permissioned ecosystems.”

In a feedback survey conducted among the participants, 83 percent respondents said that the trial ‘Exceeded Expectations’ and 100 percent said they will recommend this pilot to their partners and peers in the industry. 67 percent of respondents believe that by having transacting parties on shared distributed ledger, they can cut down the processing time by over 30 percent. 11 percent believe the improvement could be over 50 percent.

“During the trial, processes which ordinarily would have taken days were concluded within hours by counterparties that are all connected in the ecosystem,” said Stephen Obasi, Group Head, Head Office Operations, Fidelity Bank. “The transparency, speed, trust and security offered by the platform makes the use case compelling for trade finance practitioners. Our expectation is that Infosys will further expand the trial to cover trade settlements and also bring other key stakeholders involved in trade including regulators, customs authority, shipping companies, forwarders, etc into the platform for an end-to-end processing.”