At first, it will be a closed network. Depending on the traction, the corporate will further open it and also reach out to smaller cities and towns in the country.
“The procedure for trade finance needs almost 200 documents. Now, if something in this goes wrong it takes another two weeks to complete the procedure. But using blockchain technology, one can almost finish it real-time and if anything goes wrong it can be corrected in a day,” said Jitan Chandanani, Partner - Blockchain Leader, IBM.
Further, the operational costs will be reduced by 30-40%, he added. Explaining how the platform works, he said that the blockchian-based trade finance platform aims to solve 8-9 different roles which includes of importer or exporter, certifications, insurance, logistics, among others. These can now be managed via the platform which will increase the overall efficiency drastically. “So any trader from India or Sri Lanka can come on the platform make a purchase and complete all the procedures right there without having to run about to ten different people,” adding, “While we work in silos with manufacturer, supplier and logistics, this platform will bring them altogether on one platform.
IBM has already signed MOUs with 4 banks in India but declined to disclose the names.
Moreover, IBM now is in talks with 10-15 insurance companies. In the next few weeks, IBM plans to launch a similar blockchain platform that will cater to the insurance sector.
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