Indian IT-giant Infosys will implement blockchain technology to improve the efficiency of international payments, the company announced at Consensus 2018 in New York.
Infosys Finacle, a subsidiary of Infosys, announced the development of India Trade Connect (ITC), a trade network, in partnership with 7 Indian private banks on Wednesday. It is currently known that ICICI, Axis Bank, South Indian Bank and Yes Bank intend to take part.
Why it is important
- With the help of blockchain, companies are hoping to increase the transparency of business processes and improve automation.
- Blockchain has not yet entered the mainstream, however, many global companies, such as IBM, Maersk and Amazon, are testing its capabilities and launching pilot projects.
The blockchain-based network was designed to digitize trade financing business processes and covers such areas such as property verification and the certification of documents and payments. The banks have begun testing ITC as part of a pilot project, with blockchain helping to manage trade risks due to increased transparency and automation.
Sanat Rao, chief business officer at Infosys Finacle, said that he hopes to attract more banks to the consortium so they can learn about the potential advantages of the blockchain:
"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 said that the partnership with Infosys "will enable automation, increase transparency as well as enhance efficiency across trade and supply chain operations."
In the future, the group seeks to create a "comprehensive blockchain ecosystem, which will contribute to the wider adoption of this technology," said Ajay Gupta, ICICI Bank senior general manager.
Infosys began experimenting with blockchain in 2015. Back then, the company explained its interest by referring to user demand for new payment technologies, such as mobile banking and digital currencies.
By Nadya Astam