Infosys Finacle, a subsidiary of the IT services firm Infosys Ltd. and part of EdgeVerve Systems, has been admitted into the International Financial Services Centres Authority’s (IFSCA) regulatory framework to manoeuvre its blockchain-based trade finance solution. In the first phase of the regulatory framework, HDFC Bank, Federal Bank, HSBC, ICICI Bank, RBL Bank, and State Bank of India collaborate with Infosys Finacle. The collaboration will likely assess the blockchain-based Buyers Credit solution for short-term credit in foreign currency, import payments, and trade finance transactions. Later, the solution will be available as a SaaS-based (Software as a service) offering for all banks servicing clients from GIFT (Gujarat International Finance Tec) City in Gujarat.
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More importantly, it will lessen transaction time from weeks to hours and save cost. It is also likely to enable trade expansion to facilitate economic growth. The solution will also enhance marketplace capability. It implies that customers can request international banking units of the participating banks to provide competitive quotes to unlock the best offers.
According to Sajit Vijayakumar, Chief Operating Officer of Infosys Finacle, “Trade is a vital engine for economic and social progress. Despite this, trade finance has a huge unmet demand globally. Solving this problem can ensure unlocking significant opportunities for banks and businesses. But there remain challenges due to the complexity of the trade finance ecosystem. Multiple entities and paper-heavy processes create high turnaround times and remarkable costs”.
