By On 23rd September 2019, Infosys Finacle, a part of EdgeVerve Systems, announced that through their partnership with R3, an enterprise blockchain software company, have completed a global blockchain trial.
A total of 18 banking groups joined the Finacle Trade Connect test network. The test network is a trade finance application based on blockchain technology which is available on the Corda platform of R3. The trial on Finnacle Trade Connect led to real trade finance transactions. This was made possible by creating a distributed global business network of nodes.
Infosys Finacle Exploring Blockchain Technology for Trade Finance
Launched in 2017, Finacle Trade Connect has grown and is currently powering an over 250 corporate trade network. R3 CEO stated that this successful completion of global blockchain at Infosys is a clear indication of a blockchain application to the financial sector, trade finance being part of it. Such tests and trials continuously propel blockchain technology to the front as a viable option in the transformation of the financial market.
The Trial Results at a Glance
During the trial, trade finance transactions were conducted over various products. Such products include open accounts, bank guarantees, letters of credit, etc. The participants were able to conduct over 400 transactions, including front, middle and back-office processes to ensure that the technology works.
In a survey, the participants stated that they would recommend the trial to both partners and peers in the finance industry. In the same survey, 86% of the respondents noted that the trial had exceeded expectations. 67% of the respondents believe that the pilot would cut down processing time with over 30%, while 11% believe that the processing time would be cut with over 50%.
Six hundred sixty-five of the participants believe that 20 % of their organizations’ operation costs would be reduced with the use of blockchain. 44% of the participants were also of the opinion that with this trial, there would be significant fraud prevention. 67% of the participants believe that there will be a transformational impact on customer experience improvement with this trial.
Santa Roa, Infosys Finacle chief business officer, stated that Finacle has been working on blockchain solutions in trade finance, identity management, and remittance. Finacle Trade Connect solution aims at helping banks reduce operating costs and improve customer experience. The trial results show how much the banks can benefit from the use of blockchain. New technology such as blockchain requires collaboration as well as co-innovation to achieve their full benefits.
Comments