Indian IT giant Infosys is exploring the potential of blockchain technology to bring new efficiencies in trade finance.
Infosys Finacle, a subsidiary of the firm, announced the development of a trade network called India Trade Connect (ITC) in partnership with seven Indian private banks, including ICICI, Axis Bank, South Indian Bank and Yes Bank. The blockchain-based network has been designed to digitize trade finance business processes and covers areas such as ownership validation, certification of documents and payments.
ITC is currently being used by the banks for a pilot project, using the blockchain-based solution to increase automation and transparency and help manage risks in trade and supply chain financing. According to Infosys, ITC has been 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 "digitization of trade finance processes using distributed ledger technology offers immense potential to eliminate the friction, cut costs and increase revenue through new business products that are now viable using the modern technologies."
ICICI bank, which recently announced a blockchain trade finance initiative involving over 250 companies, said that the partnership "will enable automation, increase transparency as well as enhance efficiency across trade and supply chain operations."
Ajay Gupta, Senior General Manager at ICICI Bank, further commented “going forward, the group aims to create a comprehensive blockchain ecosystem, thereby contributing towards greater adoption of this technology.”
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