Kotak Mahindra Bank re-defines trade finance with Blockchain

19 May 2017

Kotak Mahindra Bank (Kotak), with the help of Blockchain technology reduces time taken for a Letter of Credit (LC) from 20-30 days to only couple of hours. Kotak claims to be the first bank to successfully complete the PoC (proof of concept) for end-to-end trade finance transaction for one of its clients, and will soon roll out this technology for all customers.
Kotak partnered with Deloitte and used the blockchain technology to complete LC transactions with JP Morgan Singapore as Partner bank (Outbound - LC issuance; Inbound - document & bill lodgement) - from issuing the LC for outbound transactions to transferring trade documentation and bill lodgement for inbound LCs to facilitating the transaction funds using Swift.
KVS Manian President–Corporate, Institutional & Investment Banking, Kotak Mahindra Bank said, "Blockchain, the “distributed ledger” technology has emerged as an object of intense interest in the financial services industry and beyond. Since 2008, the Blockchain technology has evolved from a way of recording transactions to a digital revolution that has the potential to be highly secure, transparent, resistant to outages, auditable, and efficient.”
"We have been investing in technology solutions that create tremendous value for customers. This transaction is the beginning of a journey on integrating Blockchain and moving towards full-scale adoption, thus giving Indian importers, exporters and domestic traders the best solution”, added Manian. (EOIC)