Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of IT major Infosys announced the global availability of Finacle Trade Connect, a blockchain-based trade finance solution for banks. The company has launched a pilot trade finance network by partnering with 11 banks to trial the Finacle Trade Connect solution.
The solution will help digitize the trade finance business process, including validation of ownership, certifying documents and making payments, while working on a distributed, trusted and shared network, the company said in a press statement.
“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,” said Sanat Rao, Chief Business Officer, Infosys Finacle.
“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,” Rao added.
The blockchain-based trade connect solution is a type of distributed ledger database that keeps continuously updated digital records offering greater transparency. For banks who are a part of it, the solution allows for a single source of truth and enable real-time availability of data, enabling better decision making and effective risk management.
It is available for a range of functions, including bill collection, letters of credit, open account for trade, consumer to consumer (C2C) and Business to consumer (B2C) transactions for Trade, PO Financing and Invoice financing, the press statement said.