Infosys has set up a blockchain-based trade network in India, in partnership with seven banks.
Called India Trade Connect, it includes Axis Bank, ICICI Bank, IndusInd Bank, RBL Bank, Kotak Mahindra Bank, South Indian Bank and YES Bank.
The range of functions include bill collection, Letters of Credit, opening accounts, customer-to-customer transactions, business-to-customer transactions, and invoice financing.
Sanat Rao, Chief Business Officer at Infosys Finacle, said that like any innovative technology, usage of blockchain-based applications will gradually increase based on proven and tangible benefits.
Finacle Trade Connect
Also, the network will be used by the banks to run a pilot of Finacle Trade Connect, a blockchain technology based solution developed specifically to address the trade finance process requirements of banks, Infosys said in a statement.
Further, Finacle Trade Connect will enable increased automation and transparency, while helping efficiently manage risks in trade and supply chain financing operations, it added.
Infosys said the network is designed to digitise trade finance business processes, including validation of ownership, certification of documents and making payments, while working on a distributed, trusted and shared network.
With the blockchain solution, financing decisions become more informed as the banks involved in a transaction are aware of the exact position of a bill as well as the exposure of the corporate with its partner bank.
Source: The Hindu