Blockchain For Trade Finance
Embrace greater speed, security, and transparency in transactions
Blockchain and Trade Finance: An Insight
Trade financing, which involves financial institutions to provide credit facilities to guarantee exchange of goods, pivots around an archaic process that has not undergone much change with the expansion of global trade flows.
Moreover, the existing trade finance paradigm is beset with multi-dimensional challenges such as complicated processes and imposition of various regulations with geographical scope. The involvement of multiple external parties across jurisdictions complicates international trade, thereby making the entire process expensive and time consuming.
All these pain points emphasize the need for blockchain in trade finance.
Need for Blockchain Based Trade Finance: Pain Points of Existing Process
The existing trade finance process has to address the following challenges:
Manual Contract Creation Process
The importing bank carefully examines the financial agreement submitted by the importer and forwards the financial information to the correspondent bank.
Invoice Financing
Exporters secure short-term financing by presenting invoices to multiple banks, however, this increases the risk of failure in the event of goods not being delivered.
Timeline Extension
The shipment of goods is prolonged due to the various checks carried out by intermediaries and the numerous communication touchpoints involved.
Manual Anti-Money Laundering Assessment
The exporting bank is required to manually perform anti-money laundering evaluations using the financial information provided by the importing bank.
Multiple System Issues
As each participant across countries uses different platforms, miscommunication is frequent, and the possibility of fraud is elevated.
Double Bill of Lading
Bills of lading are duplicated as banks cannot verify their authenticity.
Variant Truths
As financial information is exchanged between entities, significant version control difficulties arise from changes made during the process.
Delayed Payment
Prior to disbursing funds to the exporting bank, multiple intermediaries must verify that the funds have been received by the importer as per the agreement, which leads to large settlement time.
Eliminate all these challenges by embracing blockchain solutions for trade finance. Connect with our experts to share your business needs.
Benefits of Using Blockchain in Trade Finance
Blockchain can foster an improved trade finance process underpinned by the following benefits.
Transparency
The transparent ledger records transactions and information in a tamper-proof manner, providing visibility and accountability to all parties involved.
Accelerated and Efficient Processes
Blockchain reduces the need for intermediaries, making the trade finance process faster, cheaper and more efficient.
Traceability
Blockchain provides a single source of truth for all parties involved in a trade transaction, enabling easy tracking of goods and ensuring supply chain transparency.
Security
The decentralized blockchain ledger offers secure and tamper-proof data storage and transaction processing, thereby reducing the risk of fraud and financial crime.
Improved Accessibility
Blockchain makes it possible to bring in new participants, including SMEs, into the trade finance ecosystem, thereby increasing the availability of trade financing for these participants.
Risk Mitigation
Blockchain can improve risk management by enabling near real-time visibility into the trade finance process, reducing the risk of fraudulent transactions and providing a secure environment for storing trade finance documentation.
Leverage the benefits of blockchain in trade finance with our expertise and real- world experience in blockchain implementation.
Need for Blockchain Based Trade Finance: Pain Points of Existing Process
The existing trade finance process has to address the following challenges:
Letter of Credit Processing
Streamline the LOC process, making it faster and more efficient by reducing the need for intermediaries and enabling near real-time communication between parties.
Invoice Financing
Automate invoice financing, reducing the time and costs associated with manual invoice processing and improving the accuracy of data.
Supply Chain Financing
Gain visibility into the supply chain and simplify the assessment of the risk of a trade transaction, thereby improving the availability of trade financing for SMEs.
Trade Documentation
Store trade finance documents, such as bills of lading, invoices, and letters of credit, in a secure and easily accessible manner, reducing the risk of fraud and financial crime.
Risk Mitigation
Improve risk management by achieving real-time visibility into the trade finance process, reducing the risk of fraudulent transactions and providing a secure environment for storing trade finance documentation.
Digital Identity
Create digital identities for participants in the trade finance ecosystem, improving the security of transactions and enabling easier verification of identity.
Trade Finance Platforms
Build trade finance platforms that bring together multiple participants, including banks, corporates, and government agencies, to streamline trade finance processes and reduce the cost and complexity of trade financing.
Discuss your business use case to turn it into a great product.
Why Choose Us to Implement Blockchain in Trade Finance?
By partnering with Antier, you can rely on a team of technical experts with real-world experience delivering end-to-end blockchain services.
Blockchain Pioneers
With years of experience in blockchain technology, we are the industry pioneers with extensive expertise. We do one thing, and we do it well.
Customization Excellence
We understand– No two businesses are the same, nor their needs. We excel at tailoring solutions to your unique requirements and vision.
End-to-End Services
We provide end-to-end services covering everything from ideation and development to deployment with the utmost professionalism and expertise.
Security-Centric Approach
Security is paramount in the crypto space so we adopt a security-first mindset, implementing industry best practices to safeguard your digital assets.
Competitive Pricing
We offer competitive pricing structures that ensure you receive exceptional value for your investment without compromising on quality.
24/7 Support
We offer unwavering, ongoing support with 24/7 availability to ensure the longevity and optimal performance of your blockchain solutions.
