Infosys Finacle pioneers blockchain-based trade network in India in consortium with seven leading banks
Infosys Finacle, a wholly-owned subsidiary of Infosys, announced the successful formation of India Trade Connect, a blockchain-based trade network in India, in partnership with Axis Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank and Yes Bank. The network is being used by the banks to run a successful pilot of Finacle Trade Connect, a blockchain technology based solution developed specifically to address the trade finance process requirements of banks.
Finacle Trade Connect will enable increased automation and transparency, while helping efficiently manage risks in trade and supply chain financing operations. India Trade Connect has also been adjudged as the winner of the prestigious Celent Model Bank 2018 award for Trade Finance and Supply Chain, affirming the potential of this network.
The network is 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 range of functions include Bill Collection, Letters of Credit, Open Account for Trade, Customer to Customer, Transactions for Trade, Business to Customer transactions for Trade, PO financing and Invoice financing.
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.
Further, the network allows for instant transfer of messages and documents between the parties involved in a completely secure manner reducing lifecycle turnaround time.
It enables reduction of cost through digitization of information exchange. Additionally, per transaction cost associated with intermediary messaging systems is eliminated.
The network, built on Finacle Trade Connect, is agnostic to underlying blockchain infrastructure such as Hyperledger, Corda, Ethereum, and Bitcoin, thereby future-proofing the network against technology evolution risks.