Infosys said it has set up India Trade Connect, a blockchain-based trade Network in India, in partnership with seven lenders, including Axis Bank, ICICI Bank, IndusInd Bank and RBL Bank. The other partner banks include Kotak Mahindra 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," Infosys said in a statement.
Finacle Trade Connect will enable increased automation and transparency, while helping efficiently manage risks in trade and supply chain financing operations, it added.
Infosys said the network 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.
"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," the statement added.
It noted that financing decisions (using the system) 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 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.
Sanat Rao, Chief Business Officer at Infosys Finacle, said 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.
"We are committed to helping our clients realise the path breaking benefits of blockchain technology and we look forward to many more collaborations to strengthen this consortium and building other networks across the world," he added.