To prevent possibilities of bank frauds, and optimising efficiency in services’ delivery, Infosys recently formed a blockchain –based trade finance network in partnership with seven private sector lenders.
Developed specifically to address the trade finance process requirements of banks, the network named India Trade Connect, 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, Infosys said in an official communiqué.
As part of the mega initiative, the seven banks that have joined hands with the IT major include ICICI Bank, Axis Bank, Kotak Mahindra Bank, South Indian Bank, Yes Bank, IndusInd Bank and RBL Bank.
“The network will create new business opportunities for participating banks, while eliminating the inefficiencies in the existing trade processes and enabling everyone involved in a transaction to have a single source of the truth. Financing decisions are more informed since 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,” the statement added.
Infosys is currently India’s second-biggest software services exporter and its Financle software is already being used by the majority of Indian banks.
According to Sanat Rao, Chief Business Officer, Infosys Finacle, the usage of blockchain-based applications is set to increase manifold in coming times, and along with that the popularity of blockchain-based applications would also increase since the technology offers unprecedented opportunities to transform a modern-day banking ecosystem.
Further highlighting Infosys’ commitment to help its clients realise the path-breaking benefits of blockchain technology, Rao mentioned that the IT major is exploring forging of similar collaborations with many global partners too.