Multinational technology service and consultancy corporation Infosys, has created a blockchain-based finance solution utilizing a document tracking system.
The platform is currently used by seven banks in India. This includes Axis Bank, ICICI Bank, IndusInd BankNSE, Kotak Mahindra Bank, RBL Bank, South Indian Bank and Yes Bank.
India Trade Connect
As reported by the Economic Times, the solution has been entitled India Trade Connect, providing a facility for banks to track shared documents on the blockchain via an accessible platform. Several of the banks involved with the scheme have already reached the production-phase, while the rest are still testing the project.
Speaking to the news site, the chief business officer at Infosys Finacle, Sanat Rao, commented: “Trade financing is document-heavy and process-heavy. The blockchain solution allows this to happen in a digitized manner. Because of the network effect, where a buyer, the buyer’s bank, the seller and the seller’s bank are all on the platform, it creates a single source of truth.”
Rao continued to discuss the future prospects of the solution, outlining Infosys’ plans to include other lenders in the network, such as the Indian arms of international banks. International trade transactions are also on the cards in the foreseeable future, with talks already in motion with entities in Hong Kong and Singapore.
Infosys executives said that work on the India Trade Connect platform began last year. Rajshekhara Maiya, associate vice-president of Infosys Finacle product strategy, told the Economic Times: ”We are also in talks with the Reserve Bank of India for [the platform]. Regulatory overview of transactions typically happens as a post-mortem but if the regulators are party to the network, they can have a real-time view.”
It is still early days for the blockchain platform, with Infosys noting that the banking model is still flexible. Financial institutions involved are required to pay an initial fee when they enter the testing stage, with the latter stages necessitating either a purchased license or subscription revenue.
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