HSBC’s Blockchain-based Platform Voltron To Reduce Transaction Times By 40% with ReChainMe
The banking institutions might not be too happy with cryptocurrencies, but this does not mean that they do not see the value of their underlying technology, the blockchain. Now, the global banking giant HSBC is set out to start using its Voltron platform.
Some tests were recently made with the blockchain-based financial platform and it was reported to the media that the technology reduced transaction times by 40%.
HSBC has partnered with the Landmark Group and the ReChainMe blockchain platform in order to create Voltron, which was used to arrange shipments between Hong Kong and Dubai. Normally, the process would take a lot more than time than 12 days, which was the amount of time that it took counting the 40% reduction.
The regional head of HSBC MENA and Turkey, Sunil Veetil, has affirmed that the blockchain is a powerful tool when it comes to trading faster. To him, they provide a business advantage that can be used in order to get an edge against competitors or to simply reduce the costs and the time that it takes for certain financial activities.
According to him, the technology enables the company to have two platforms seamlessly connected. This means that everybody involved in the transactions are free to track the progress of each transaction and to agree on the terms of the transactions together.
This is something that helps a lot in the management because the documents can be co-created and approved together much faster than they would be if the whole process was done in separate as it was before. Therefore, the whole logistics of the situation is considerably improved. It is a level of efficiency that is simply incompatible with how things worked out before.
At the beginning of this year, HSBC revealed that the platform could be used to cut the costs of forex activities by a quarter. Seeing the results now, it seems that the costs may be cut even more.
With the help of this new technology, HSBC will be able to coordinate its payments between all its hubs, which are present in most of the globe.
The head of global trade and finance at HSBC, Beatrice Collot, has also talked about the potential that the technology has. To her, the two main strengths of the technology are how transparent it is to everybody involved in the transactions and how quick it is.
She also affirmed that the blockchain technology is set to completely reshape how global trade finance is done and that this will bring stakeholders together and solve several issues.
The Blockchain Is Here To Stay
It is not hard to see how the blockchain technology is here to stay. Several companies related to finances and logistics or supply chains are using it now. We have giants such as the Santander bank, IBM, Maersk, Nestlé, Walmart, JP Morgan and several others starting to create solutions that will be game-changers in the industry.
The most important effect of this is that the companies who are innovating in these areas will have such an advantage against the others that the blockchain is quickly becoming essential to some of these businesses. Some years from now, we’ll probably see even more initiatives like HSBC’s Voltron.