75% IMPROVEMENT IN CYCLE TIME
FOR LETTER OF CREDIT
SHED PAPER AND
India’s trade finance business is seeing steady growth in tandem with the country’s economy. However, trade finance processes are plagued by legacy challenges, including lack of agility and transparency, and susceptibility to fraud. Infosys Finacle, along with a consortium of seven leading Indian banks, saw an opportunity to transform the business by leveraging blockchain technology.
The Infosys Finacle team brought all the stakeholders together, to create an ecosystem of entities involved in the trade finance supply chain, building consensus and collaboration. The team then undertook innovative, agile product delivery to allow the conduct of successful POCs (proof of concept) in a secure cloud hosted common environment. The result was the India Trade Connect network, built on a winning combination of cutting edge technology, willingness to embrace paradigm shifts, and strong collaboration among the participants. Cost reduction, risk mitigation, speed, traceability and security, are among the multiple benefits the participants are seeing from the pilot.
THE FUTURE OF TRADE
India Trade Connect is powered by Finacle Trade Connect, a blockchain-based solution for all banking trade finance requirements that:
Digitize trade finance business processes, including
ownership validation, documents certification and payments fulfillment, on a distributed, trusted network
Offer wide functionality, including bill collection, letters of credit, open account for trade, C2C/B2C transactions, and purchase order/ invoice financing
Agnostic to the underlying distributed ledger infrastructure (Hyperledger, Corda, Ethereum, Bitcoin etc.) to avoid
technology evolution and obsoletion