Indian IT giant Infosys is exploring the potential of Blockchain Technology to bring new efficiencies in Trade Finance. Infosys Finacle, a subsidiary of the company, announced Wednesday the development of a trade network called India Trade Connect in partnership with seven Indian private banks, including ICICI, Axis Bank, South Indian Bank and Yes Bank. The blockchain based network was created to digitize trade finance business process and covers areas like ownership validation, accreditation of documents and payments. ITC is currently being utilized by the banks for an aviator project, utilizing the blockchain based solution to, a release states, increase automation and transparency, and helps manage risks in trade and supply chain financing.
According to Infosys, ITC was built to be blockchain agnostic in order to future proof the network against future changes in technology. Sanat Rao, chief business officer at Infosys Finacle, said he hopes to bring more banks into the consortium in order so that they can learn more about the potential advantages of blockchain systems. Rao said: Digitization of trade finance processes using distributed book technology offers immense potential to get rid of friction, reduce costs and increase revenues through new commercial products which are now viable utilizing the modern technologies.”. ICICI bank, which lately announced a blockchain trade finance initiative involving over 250 companies, said that the partnership will allow automation, increase transparency as well as improve efficiency in business and supply chain operations.”.
Moving Forward, the group aims to create a complete blockchain ecosystem, thus contributing towards greater adoption of this technology, said Ajay Gupta, Senior General Manager of ICICI Bank. Infosys building image via Shutterstock. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.