Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys, on Wednesday announced the global availability of Finacle Trade Connect, a blockchain-based trade finance solution for banks.
The solution will help digitise the trade finance business process, including validation of ownership, certifying documents and making payments, while working on a distributed, trusted and shared network.
The solution is available for a range of functions, including bill collection, letters of credit, open account for trade, C2C transactions for trade, B2C transactions for trade, PO financing, and invoice financing.
Infosys Finacle also launched a pilot trade finance network for banks to trial the Finacle Trade Connect solution. Eleven banks have partnered with Infosys Finacle to be on the network. Sanat Rao, Chief Business Officer, Infosys Finacle, said,
Typically, trade finance processes involve complex documentary processes, high transaction costs, high settlement times and low authenticity rates with physical documents. As a result, a bank’s business customer is straddled with delays, high costs, and risks. Besides, most small business customers worldwide experience challenges accessing trade credit, with a significant majority of applications for trade finance unable to go through.
Adding to that, he said, “Finacle Trade Connect holds much promise to help banks ease pressing concerns internally, as well as those faced by their business customers, with advantages increasing exponentially with more banks collaborating. Infosys Finacle is committed to helping our customers through this journey to realise the path breaking benefits of blockchain technology.”
Some of the key benefits of the solution were highlighted as the following:
The solution is based on the EdgeVerve Blockchain Framework, an asset-agnostic and permissioned distributed ledger that allows banks to rapidly deploy blockchain-based services for varied business areas. The framework is ledger-agnostic and is capable of working with most industry leading blockchain platforms such as Bitcoin, Hyperledger, Ethereum, and Corda.