A wide range of industries globally are embracing blockchain technology and using this transformative technology to make the business process more secure, efficient, and transparent.
The banking industry has not been left behind and the use of blockchain technology in financial institutions enables banks to operate on a single source of truth, improve service delivery, and eliminate potential risks and frauds.
Infosys Finacle in collaboration with Axis Bank, Induslnd Bank, ICICI Bank, RBL Bank, Kotak Mahindra Bank, Yes Bank, and South Indian Bank have formed the India Trade Connect which is a blockchain network based in India. The network is set to digitalize the trade finance business processes that include certification of documents, validation of ownership, and the making of payments.
Infosys Finacle made the announcement on 16th May 2018 adding that the network will be built on Finacle trade which is a blockchain technology-based solution developed to address the trade finance process requirements of banks.
Finacle trade will be agnostic to the underlying blockchain infrastructure such as Ethereum, Hyperledger, Bitcoin, and Corda. This ensures the network is future-proof against technology evolution risks.
Advantages Of The India Trade Connect Network
Some of the advantages of the network include increased transparency, automation and provide the help needed to manage risks in supply chain and trade financing operations. The network will also create new business opportunities for the partnering banks and do away with inefficiencies that exist in the current trade processes.
Another advantage of the network is that it will allow for better-informed financing decisions by the banks as the bank that is part of the transaction will be well aware of the reputation of the corporation with its partner bank.
The network will also enable the direct transfer of messages between parties of the network, which will ensure fast and secure connections.
Further, the digitalization of information exchange will reduce costs associated with intermediary messaging systems
Some of the services offered by the network include:
- Collection of bills
- Provision of letters of credit
- Opening accounts for trade
- Allowing customer to customer trade transactions
- Allow business to customer trade transactions
- Invoice and PO financing
The Indian trade connect network was the winner of renown Celent Model Bank 2018 award in the category of trade, finance, and supply chain.
Infosys Finacle is part of EdgeVerve Systems that is a wholly owned subsidiary of Infosys. Finacle helps financial institutions to achieve a digital transformation allowing the institutions to reach large ecosystems, achieve frictionless customer experiences, acquire insight driven interactions, and innovative automation.
Finacle serves banks in more than 100 countries and more than a billion bank customers and 1.3 billion account holders enjoy their services.
Finacle provides solutions to different areas of banking including liquidity management, banking payments, omnichannel banking, wealth management, Islamic banking, artificial intelligence, analytics, and blockchain technology services among others.
These services help to drive business excellence for banks and other financial institutions. According to an assessment done on the top 1250 banks globally, financial institutions powered by Finacle core banking solutions enjoyed an average of 7.2% lower costs to income ratio compared to other banks.