To increase security and efficiency in the Banking Sector, second largest IT firm of India ‘Infosys Ltd’ has formed a blockchain based trade finance network along with Seven (7) Indian Banks. The platform is named as ‘India Trade Connect’ and aims to set a document tracking system for trade finance using blockchain technology. The seven banks who have been on-boarded are ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank and South India Bank.
The solution earlier known as Finacle Trade Connect has now been rechristened as India Trade Connect to address the trade finance process requirements of banks which involves lot of documentation. India Trade Connect will digitize various processes of trade financing like validation of ownership, certifying documents, making payments, collection of bills, producing letters of credit, invoice financing, etc. The solution will store details of every transaction securely shared between all the parties involved, say for instance, a buyer, the buyer’s bank, a seller and the seller’s bank as opposed to each bank working independently which is more expensive and increases the chance of error. The solution will make transactions more transparent for all the stakeholders.
Chief Business Officer at Finacle, ‘Sanat Rao’ said to media houses that, “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 further mentioned that, “The framework of India Connect is said to be ledger agnostic and capable of working with other blockchain platforms like Bitcoin, Hyperledger, Ethereum and Corda.” Elaborating the Infosys expansion plans, Rao mentioned that, “We're in very advanced discussions in Australia with a consortium of banks and I think you'll see more announcements.”
This is not the first time when Indian banks are attempting to integrate blockchain into their systems. Last year in June 2017, ICICI Bank, DCB Bank, Deutsche Bank & few other banks partnered with Microsoft to develop blockchain solution for the Indian banking sector. It was named as ‘BankChain’.