India-based IT giant Infosys Finacle announced it team up with 7 banks to develop the “India Trade Connect” (ITC), including Axis Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank and Yes Bank to enhance efficiency in trade finance, according to a press release published on May 16.
The consortium developed the blockchain-based platform Finacle Trade Connect to improve trade finance process. This blockchain will ameliorate automation and transparency and will also enhance efficiency to deal with risks in trade and supply chain financing operations.
The blockchain-based network will digitize trade finance business processes in different sectors including validation of ownership, certification of documents and making payments.
The Chief Business Officer at Finacle, Sanat Rao, mentioned,
“Blockchain technology offers unprecedented opportunities to transform banking. Like any innovative technology, the usage of blockchain-based applications will gradually increase from early adopters to others who will join based on proven and tangible benefits.[…].Digitization 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”
Axis Bank sees a lot of potential in “India Trade Connect initiative to digitize end-to-end trade finance operations and bring about a speedy, transparent and secure experience for our corporate clients.”
The Senior General Manager at ICICI Bank, Ajay Gupta, expressed,
“We believe, this will enable automation, increase transparency as well as enhance efficiency across trade and supply chain operations. With more organizations adopting the blockchain technology, it holds immense potential to offer a seamless network for all stakeholders on a single platform.”