Source: Bits Online, originally published on .
Infosys Limited, one of India’s leading software exporters, has developed a blockchain-powered trade finance network to optimize bank transactions. Currently, seven domestic private banks are piloting the network with more foreign and local financial institutions to join in the coming weeks, as reported on Reuters.
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Indian Banks Bet Big on Blockchain Technology
Infosys Finacle chief business officer Sanat Rao revealed that the seven private lenders testing the new Infosys trade finance network include large domestic players like Kotak Mahindra Bank Ltd, ICICI Bank Ltd, and Yes Bank Ltd.
“We’re in very advanced discussions in Australia with a consortium of banks and I think you’ll see more announcements.”
The blockchain pilot comes at a time when the Indian banking sector is suffering from over $ 2 billion USD in fraud. With the integration of distributed ledger technology, these banking operations seek to increase transparency and ensure no manipulation takes place.
Indeed, the Infosys blockchain-powered network will make transactions transparent for all participants of the process, including buyers, sellers, and regulators.
ICICI’s Already on the Move
ICICI, one India’s biggest private lenders, already has a hands-on experience with blockchain tech, having developed a tailored blockchain platform to perform domestic and international transactions.
Earlier this year, the lender onboarded 250 corporate businesses to use its custom blockchain platform for secure and cost-effective cross-border payments. The bank also boasts of being the first Indian bank to perform a banking transaction on the distributed ledger technology.
In reference to ICICI’s recent blockchain adoption, Chanda Kochhar, CEO of ICICI Bank, stated:
“ICICI Bank has a rich legacy of leveraging the latest technology to bring in new paradigms in banking. We were the first in the country and among few globally to pioneer cross-border open account trade finance and remittance transactions on blockchain.”
Part of a Global Pivot?
Speaking at the 22nd World Congress on Information Technology, Indian Prime Minister Narendra Modi stated earlier this year that blockchain technology can transform the way we live.
“Disruptive technologies such as blockchain and the IoT will have a profound impact in the way we live and work. They will require rapid adaptation in our workplaces,”said PM Modi.
Recently, two global banking giants, the London-based HSBC Holdings PLC and Dutch bank ING, successfully completed the world’s first live trade finance transactions employing blockchain. The transactions highlight DLT’s ability to transform paper-intensive and time-consuming financial activities.
How can blockchain technology revolutionize the banking sector? Share your views in the comments section.
Images via Moneycontrol, Fortune
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