HSBC business banking has made revolutionary debut in Indian market with its first blockchain powered trade finance transaction. The executed operation was done between Indian conglomerate Reliance Industries and an American client Tricon Energy. The entire process was relatively smoother and hassle-free as compared to the conventional method. Precisely, it massively reduced the required time for the documentation which was replaced by a blockchain-enabled letter of credit.
RIL joint chief financial officer Srikanth Venkatachari confirmed that the use of blockchain based network has enabled the entire process to become completely seamless and easy to go. He further added that the usual time required in a conventional methods goes up to somewhere seven to ten days which came down to less than a day by the HSBC blockchain transaction.
HSBC business banking head Hitendra Dave also added that distributed ledger technology has brought a revolutionary change in the conventional banking processes. It provides enhanced security and offers greater transparency in the trade finance transactions and makes them faster with ensured cost effectiveness.
The current conventional process requires buyers and sellers paper-based LCs to strengthen transactions. All the physical documents are then sent to both the parties through fax or courier which takes both time and cost factors as mentioned by Your Story.
Conventional Method Going Out Of Date
There would be any wonder if the conventional transaction process goes obsolete in the upcoming years. All the major Indian banks have adopted blockchain technology in some of the other way. The research and development of this emerging technology is going to lay the foundation of a new banking generation which will be very different from what it is now. Banks like SBI, ICICI, and Yes Bank have already begun working on blockchain based solutions as one of the best use cases to cut short the time required in the operations. (Via Business Today)
HSBC business banking will be expanding internationally with the help of Corda application to cover more such transactions successfully in the future.
The post HSBC Business Banking Begins Blockchain Transaction: Begins End Of Conventional Documentation Method appeared first on OWLT Market.
from OWLT Market https://ift.tt/2yUJQ3d
via IFTTThttps://ift.tt/2OlCCL9
No comments:
Post a Comment