Infosys forms Blockchain-based Trade Network with Seven Indian Banks
Infosys Finacle, a subsidiary of Indian tech giant Infosys, has established a blockchain-based trade network in the country in collaboration with seven major domestic banks.
Dubbed India Trade Connect, the network will be used by the banks to run a pilot of Finacle Trade Connect, a blockchain-based trade finance solution developed for banks. The participants include Axis Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank, and Yes Bank.
Finacle Trade Connect will facilitate enhanced automation and transparency, while helping efficiently manage risks in trade and supply chain financing operations.
Chief Business Officer of Infosys Finacle, Sanat Rao said of the network;
“[D]igitization of Trade Finance processes using distributed ledger technology offers immense potential to eliminate the friction, cut costs and increase revenue through new business products that are now viable using the modern technologies.”
The platform has been 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 trade network provides a number benefits for the participants including cost reduction, risk mitigation, speed, and traceability and security. By enabling everyone involved in a transaction to have a single source of data, it will also help banks make more informed financing decisions. It will ensure that 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 respective partner bank.
Infosys Finacle has also addressed technology evolution risks by designing it as a platform agnostic network to underlying blockchain infrastructure such as Hyperledger, Corda, Ethereum, and Bitcoin.
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