Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys Ltd, on Monday announced the successful completion of a global blockchain trial in partnership with enterprise blockchain software companies R3. Financial institutions across 19 countries participated in the trial that was completed in less than five weeks.
The global blockchain technology market size is expected to reach $57.64 billion by 2025, registering a CAGR of 69.4% from 2019 to 2025, according to a study conducted by Grand View Research. Blockchain is the underlying technology that originated in the form of a public ledger to keep a track of all cryptocurrency transactions.
The participating banks conducted trade finance transactions across products such as open account, factoring, bank guarantees, invoice financing and letters of credit. They simulated both domestic and international trade processes by forming intra-country and inter-country groups.
In a feedback survey conducted among participants, 67% of the respondents said they can cut down processing time by over 30% by having transacting parties on a shared distributed ledger. In terms of operational costs, 66% of participants said that in the long run, their organisations can reduce at least 20% of their trade finance operational costs by leveraging the trade network on blockchain. 44% of the respondents said the impact on fraud prevention would be significant.
David E. Rutter, CEO at R3, said, “Infosys Finacle’s successful completion of this global blockchain trial is a clear demonstration of the efficiencies blockchain can bring to various financial markets, and trade finance is no exception to that. As the promise of the technology continues to gather pace through trials such as this one, we are moving closer to bringing blockchain to the fore as a viable option to transform financial markets – in trade finance and beyond."
The participating banks include ABC Bank Ltd, AO Alfa-Bank, Axis Bank, Bank of Baroda, EBE Bank, Federal Bank, Fidelity Bank Plc, First Bank of Nigeria, First City Monument Bank Ltd, Gulf International Bank, Intesa Sanpaolo, Prime Bank, RBL Bank Ltd, Syndicate Bank and Standard Bank (South Africa).