Trade Finance Blockchain Applications on the Rise
London, September 13th 2018 – FINEON participated in the Blockchain World Summit 2018 which took place in London across two days (12-13 September 2018), focusing on the Blockchain technology innovation as a global solution.
For the past few years, the buzz around blockchain has grown to a crescendo. Long regarded as a technological novelty, blockchain is quickly evolving, and may soon become a viable financial tool on a global scale. One of the more interesting areas that blockchain is seeking to address is trade finance and global trade.
By aiming to solve its clients pain points and needs, FINEON’s trade finance blockchain application aims to serve its clients with a leaner, faster process flow that helps secure international trade transactions and offers innovative financing solutions that supports growing its clients’ businesses.
As global trade has grown more complex and involves a large number of variables when communicating information such as country of original, product details, bills of landing and transactions generate high volumes of documentation; FINEON’s distributed ledger trade finance platform uses consensus formation among participants to enable transactions to take place in the absence of a trusted central authority, thus creating an ecosystem that is efficient, safe, reliable and cost effective.
Global bank trade finance cross-border transaction costs keep getting higher on the heels of BASEL III and BASEL IV, and as such banks have spent more than $100 billion on regulatory compliance in 2016 alone and the costs are rising. FINEON envisages that utilizing blockchain will enable banks to realize savings on cross-border settlement transactions of more than $27 billion by 2030, reducing costs by more than 11% per on-chain transaction while also enabling banks to optimize on their KYC-AML costs by generating $3-$5 billion in cost savings across the industry.
FINEON’s expertise in working capital solutions in both the receivables and payables spheres along with its innovation blockchain model within the fintech ecosystem has generated great interest among the conference’s participants, especially with its innovative Export Receivable solution.