IBM is launching a Blockchain-based trade finance platform that is designed to create multi-party cross border trading networks in the South Asian region. Currently, the trade finance procedure in this region demands nearly 200 documents and the time taken to complete the procedure is around two weeks. Using IBM’s new platform, one can finish the procedure in real-time without much efforts. Any corrections required can be made in a single day. That means, the operational costs will be reduced by 30-40%.
Additionally, the Blockchain-based trade finance platform allows to efficiently manage different roles including importer, exporter, certifications, insurance, logistics and more. That means, a trader from a South Asian country (such as India or Sri Lanka) can come to the platform, make a purchase, and complete all the procedures right there, without running to different people for fulfilling the requirements. While the manufacturers, suppliers, distributors, and logistics work in silos, the IBM trade finance platform will unite everyone on a single platform.
Initially, the platform will function as a closed network. Depending on the acceptance and traction, it will be extended further to small cities and towns in the South Asian countries. IBM is taking the required steps to deliver the platform full-fledged soon, and is continuing its discussions with major banks and insurance companies.
In August 2017, IBM partnered with a group of prominent global retailers and food suppliers to develop a Blockchain consortium, in a bid to prevent the circulation of contaminated food among consumers. Similar to the incumbent trade finance package, IBM also plans to launch a Blockchain platform to support the Insurance industry in the near future.