To power blockchain-based trade finance
BBN Bureau
BANGALORE/August 1-2022: Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys, has been inducted into International Financial Services Centres Authority’s (IFSCA) Regulatory Sandbox framework to pilot its blockchain-based trade finance solution, according to an official release from Infosys Ltd.
The authorisation was issued in the presence of the Prime Minister of India, Narendra Modi to Sajit Vijayakumar, Chief Operating Officer, Infosys Finacle, at an event organised by the IFSCA, at the Gujarat International Finance Tec-City (GIFT City).
Federal Bank in core team
In the first phase, six leading banks – Federal Bank, HDFC Bank, HSBC, ICICI Bank, RBL Bank and State Bank of India (SBI) – are collaborating with Infosys Finacle in the regulatory sandbox.
This collaboration will lead to comprehensive testing of the blockchain-based Buyers Credit solution, for short-term credit in foreign currency for import payments and trade finance transactions, the release added.
“This will serve as a precursor to the solution being available as a SaaS-based offering for all banks servicing clients from GIFT City. In its endeavour to support a world-class fintech hub at GIFT City, IFSCA had launched I-Sprint’21, a global FinTech Hackathon, as part of InFinity Forum 2021,” the statement added.
After multiple rounds of assessment, the Finacle Trade Connect, a blockchain-based solution was selected for the ‘Buyers Credit Optimisation’ category and consequently, granted direct entry into the IFSCA’s Regulatory Sandbox. Finacle Trade Connect helps banks, corporates, and various trade partners, such as shipping companies, insurers, and customs agencies, connect directly on a unified distributed network enabling inter-organisation automation of trade finance processes.
Apart from Buyer’s Credit, the solution offers capabilities across Letter of Credit, Open Account for Trade, Bill Collection, Bill Exchange, C2C Transactions for Trade, B2C Transactions for Trade, PO Financing, Invoice Financing, Bank Guarantee, and Factoring.
Sajit Vijayakumar, Chief Operating Officer, Infosys Finacle, said, “Trade is a vital engine for economic and social progress. Yet, trade finance has a huge unmet demand globally. Solving this problem can help unlock significant opportunities for businesses and banks.”
He said Infosys Finacle is pleased to collaborate with leading banks and the IFSCA to help reimagine trade finance processes.
