The solution will help in digitising trade finance business process, comprising of ownership validation, certifying documents and making payments, while dealing with a distributed, trusted and shared network.
“Typically, trade finance processes involve complex documentary processes, high transaction costs, high settlement times and low authenticity rates with physical documents. As a result, a bank’s business customer is straddled with delays, high costs, and risks,” said Sanat Rao, Chief Business Officer, Infosys Finacle.
“Finacle Trade Connect holds much promise to help banks ease pressing concerns internally, as well as those faced by their business customers, with advantages increasing exponentially with more banks collaborating,” Rao added.
Defined as a type of distributed ledger database, blockchain-based trade connect solution helps in keeping transparency among the frequently updating digital records.
The solution helps the partner banks access real time availability of data, enabling better decision making and effective risk management.
“It is available for a range of functions, including bill collection, letters of credit, open account for trade, consumer to consumer (C2C) and Business to consumer (B2C) transactions for Trade, PO Financing and Invoice financing, “said an official communiqué.
The newly launched solution is based on the EdgeVerve Blockchain Framework, an asset agnostic and permissioned distributed ledger that enables banks to swiftly deploy blockchain-based services for dealing with varied business areas.