Just a short writeup on my thoughts about how blockchain technology is going to have impact on lending/credit domain in medium to long term.
Kindly email me -vinkar.shan@gmail.com or Call on +91-7032409664 for any queries.
Back in mid June we (Data Explorers) lifted the kimono on the central counterpart debate, or lack of, and today return to the theme after hearing the views of CCP proponent and electronic trading venue, SecFinex.
Basics covering Why, What and How of structured finance. Also includes possibility of blockchain and data science use cases. The talk was delivered by Prajeesh Jayaram to students of IIT Kanpur and other colleges on 12th February 2022.
Smart Contracts in Financial Services: Getting from Hype to Reality. Reporteraser Juan José Calderón
Smart Contracts in Financial Services: Getting from Hype to Reality.
Executive Summary
The potential of smart contracts – programmable contracts that automatically execute when pre-defi ned conditions are met – is the subject of much debate and discussion in the fi nancial services industry.
Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional fi nancial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, ineffi ciencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the fi nance system and reducing risk, create overhead costs for and increase compliance requirements.
In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with fi nancial services industry professionals, prominent smart contract startups, and academics (see Research Methodology at the end of this paper). Our study confi rms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more effi cient business processes across all major segments of the fi nancial services industry. These benefi ts will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of fi rms to share a common view of the contract between trading parties. Consumers will benefi t from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.
Hoy traemos a este espacio esta infografía de Capgemini Consulting , titulada Smart Contracts in Financial Services: Getting from Hype to Reality , y que nos presentan así:
The potential of smart contracts – programmable contracts that automatically execute when pre-defined conditions are met – is the subject of much debate and discussion in the financial services industry. Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional fi nancial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, inefficiencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the finance system and reducing risk, create overhead costs for and increase compliance requirements.
Initial coin offerings (ICOs) are a new way of raising funds for projects running on blockchain technology. Similar to the role venture capital (VC) plays in financing start-ups in traditional finance, ICOs are the future of venture investing in the blockchain world. Through ICOs, exponential returns can be earned in a very short period of time. When a decentralised application is created, the start-up behind it can sell the associated coin or token early in the process for an amount based on what it thinks it’s worth.
Leading the pack in blockchain banking
Trailblazers set the pace.
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 banks in 16 countries on their experience and expectations with blockchains. What differentiates the early adopters and what can we learn from them?
Blockchain for Trade Finance: Payment Method Automation (Part 2)Cognizant
By modeling payments as self-executing contracts on blockchain, parties across the trade finance continuum could automate contract compliance and ensure faster assured payments by preventing disputes that arise from ambiguities in payment contract terms and conditions.
Back in mid June we (Data Explorers) lifted the kimono on the central counterpart debate, or lack of, and today return to the theme after hearing the views of CCP proponent and electronic trading venue, SecFinex.
Basics covering Why, What and How of structured finance. Also includes possibility of blockchain and data science use cases. The talk was delivered by Prajeesh Jayaram to students of IIT Kanpur and other colleges on 12th February 2022.
Smart Contracts in Financial Services: Getting from Hype to Reality. Reporteraser Juan José Calderón
Smart Contracts in Financial Services: Getting from Hype to Reality.
Executive Summary
The potential of smart contracts – programmable contracts that automatically execute when pre-defi ned conditions are met – is the subject of much debate and discussion in the fi nancial services industry.
Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional fi nancial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, ineffi ciencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the fi nance system and reducing risk, create overhead costs for and increase compliance requirements.
In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with fi nancial services industry professionals, prominent smart contract startups, and academics (see Research Methodology at the end of this paper). Our study confi rms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more effi cient business processes across all major segments of the fi nancial services industry. These benefi ts will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of fi rms to share a common view of the contract between trading parties. Consumers will benefi t from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.
Hoy traemos a este espacio esta infografía de Capgemini Consulting , titulada Smart Contracts in Financial Services: Getting from Hype to Reality , y que nos presentan así:
The potential of smart contracts – programmable contracts that automatically execute when pre-defined conditions are met – is the subject of much debate and discussion in the financial services industry. Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional fi nancial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, inefficiencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the finance system and reducing risk, create overhead costs for and increase compliance requirements.
Initial coin offerings (ICOs) are a new way of raising funds for projects running on blockchain technology. Similar to the role venture capital (VC) plays in financing start-ups in traditional finance, ICOs are the future of venture investing in the blockchain world. Through ICOs, exponential returns can be earned in a very short period of time. When a decentralised application is created, the start-up behind it can sell the associated coin or token early in the process for an amount based on what it thinks it’s worth.
Leading the pack in blockchain banking
Trailblazers set the pace.
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 banks in 16 countries on their experience and expectations with blockchains. What differentiates the early adopters and what can we learn from them?
Blockchain for Trade Finance: Payment Method Automation (Part 2)Cognizant
By modeling payments as self-executing contracts on blockchain, parties across the trade finance continuum could automate contract compliance and ensure faster assured payments by preventing disputes that arise from ambiguities in payment contract terms and conditions.
FirstPartner's 2016 Blockchain Ecosystem Market Map helps to decrypt the blockchain landscape with a visual overview of the emerging ecosystem, players, technologies and trends. It clearly summarises three main areas of focus emerging around the core blockchain or distributed ledger protocols:
1) Bitcoin and Cryptocurrencies: Providing an alternative to centrally managed "fiat" currencies, this sector includes Bitcoin exchanges, Bitcoin wallets, miners and cryptocurrency payment processors. The map illustrates how these companies interact and features some leading players including Coinbase, Circle, Kraken and 21 Inc.
2) The Financial Services Blockchain: This has been the main area of focus over the last 12 months as attention shifts from Bitcoin to Financial Services applications. An increasing number of players are focussing on commercialising blockchain technologies for banks, securities, derivatives and asset markets and institutional investors - and are attracting VC funding to do so. Ripple and Ethereum are leading candidate protocols for payment processing and smart contracts and players including Ripple, Chain and Digital Asset Holdings are gaining traction with Financial Institutions. The Map highlights leading technology companies and some of the banks, card schemes and processors who are investing in or evaluating distributed ledger technologies.
3) Other Use Cases: The distributed ledger concept and its ability to support transparent and tamper-proof asset registration, proof of ownership and asset transfer transactions makes it potentially applicable to multiple non financial use cases. The Map highlights a number of candidate use cases including publishing, legal, distributed data storage, document management and IoT. Some of the pioneering initiatives and companies exploring these applications are included.
Crucially the Map also provides a clear pictorial explanation and summary of the leading protocols at the heart of the ecosystem and concepts including coloured coins and smart contracts that supplement them to make a number of the proposed services possible.
A printable version of the map can be downloaded from www.firstpartner.net.
Smart Contract is one of the greatest features supported by revolutionary Blockchain Technology. It is because of smart contracts blockchain is finding its adoption in every sector and going to create disruption in the way we are going to do exchange among each other.
This ppt covers basics about what is smart contracts and its use cases.
Smart Contract is gaining popularity globally. The objective of this presentation is to provide an overview of smart contract, types, components, technologies and use cases.
Global payments community supplemented revenues, income and earnings per share information determined in accordance with GAAP by providing those measures on an adjusted basis in this earnings release to assist with evaluating performance. In addition to GAAP measures, management uses these non-GAAP measures to focus on the factors the company believes are pertinent to the daily management of our operations
P2P Lending Business Research by Artivatic.aiArtivatic.ai
Financial Lending or P2P Lending is going to play important role in the economy of entire world including India. Artivatic conducted Lending (P2P) research to understand the sector specific problems, growth and opportunities and also the use of technologies.
#lending #p2p #fintech #banking #insurance #payments #accounts #bfsi #deeptech #artivatic #startups #technology
Blockchain is already disrupting several industries, with opportunities for radical improvement of existing business models. But still banks and financial institutions are the ones likely to realize the highest benefits of adopting Blockchain.
As trade finance is getting a lot of attention, we will see here how in a single letter of credit transaction Blockchain can introduce significant improvements to a lot of banking activities in addition to trade finance:
• Trade finance
• KYC and AML
• Regulatory compliance
• Syndicated lending
• Payment settlement
• And Nostro Reconciliation
Future of Money, Banking & Payment Industry (it-Cafe.ir)Masoud Zamani
از «اپل پی» تا بیتکوین، از پرداختهای همتا به همتا تا حجم بسیار بالای رمیتنس در جهان، از انبوهی استارتآپهای متنوع در صنعت پرداخت و بانکداری تا نفوذ عجیب پرداختهای موبایلی در کشورهای توسعه نیافته نظیر کنیا، همه روزه شاهد اخبار متنوع و البته رشد بی سابقهای از حضور و و نفوذ فناوری در این صنعت هستیم. نکته جالب اینکه بخش عمدهای از کسانی که احتمالاً آینده پول و صنعت پرداخت را رقم خواهند زد، شرکتها فناور نظیر اپل، سامسونگ و یا گوکل هستند که هیچ تجربه بانکی و سابقهای در این بخش ندارند و کمتر اسم بانکها را در این جریان میشنویم. براستی چه اتفاقی در حال رخ دادن است.
در این ارائه با عنوان «آینده پول، صنعت پرداخت و بانکداری» روندهای فناوری اثرگذار بر پول و صنایع پرداخت را بررسی کرده و آینده و جایگاه بازیگران فعلی و البته نوع نگرش به پول را بررسی خواهیم نمود.
----
Videos:
Part 1: http://www.aparat.com/v/WpbRj
Part 2: http://www.aparat.com/v/xdW5b
Part 3: http://www.aparat.com/v/3NWDG
Part 4: http://www.aparat.com/v/1ZL93
How does blockchain developer help improving the banking & finance sector Blockchain Council
We need to understand why there is a need for syncing Blockchain technology intervention in the banking and finance sector. To understand this, let us have an insight into the current problems that surround the banking sector:
Brugu – Being a Leading DeFi Development Company in India, We offer end-to-end Decentralized Finance Development Services on DeFi Insurance, DeFi Lending and Borrowing, DeFi Yield Farming, DeFi Decentralized Exchange, DeFi Wallet, DeFi Smart Contract Development, DeFi Staking, DeFi DApp Development, DeFi Tokens Development, and many DeFi custom services.
KYC or “Know Your Customer” procedures are used by banks and other financial institutions to obtain information about the identity and address of the customers.
Check out the full details
https://bit.ly/2S5JnGj
Takeaways from the Financial Action Task Force's Guidance on Virtual Assets a...Lesa Moné
On Thursday, October 28th, the Financial Action Task Force (FATF) released its latest guidance for virtual assets, introducing new and updated requirements for the industry.
These slides are from a webinar where the Notabene team summarized the most important takeaways from the updated FATF guidelines, discussed their implications, and highlighted how Notabene can help cryptocurrency businesses comply with the latest guidance.
The global bond market is in a stage where returns are muted and any efficiency will be a huge plus. While regulatory costs, transaction costs and issuance costs eat away a part of the meagre returns, continuous credit risk monitoring and lack of liquidity have been major concerns. The presentation looks at the nature of processes involved in the issuance and trading of bonds and identifies the pain points of the market participants. Then it discusses how we may come up with a solution for solving the bond market’s pain points by maintaining the market on an ecosystem of blockchains. A possible blockchain design for the market is described and the roles that the participants may play in the new ecosystem is elaborated. Blockchain’s inherent services help in
(1) Streamlining the issuance where all participants work in real time on common datasets and
(2) Trading of bonds by eliminating duplicative steps & shrinking the settlement cycle
The reduction in issuance time and settlement time, in turn, reduces market participant’s costs, risks and capital locked up. This solution design may have other positive side effects like improving liquidity, more transparency and easier asset servicing. The presentation concludes by looking at the evolving landscape and strategies that market players may adopt to stay in the forefront.
Gharar Free ReBittance – Powered by BlockchainLokesh Gupta
ReBittance can be defined as remittance backed by Blockchain technology instead of a traditional model based on a centralized network. Blockchain technology facilitates the use of digital assets such as cryptocurrency to process payments using unique secured shared electronic ledger. This unique feature of blockchain technology eliminates gharar (uncertainty) and make transaction processing cost-effective (low fee - ujr) and facilitates financial inclusion for unbanked such as migrant worker remittance to their home country. Another advantage is impenetrability, making it difficult to compromise as everything is tracked on a ledger which stops people from spoofing it or creating fake data. Blockchain strengthens the payment ecosystem by providing limitless opportunities in the usage of digital assets, payments, remittance and implementation of smart contracts. Islamic Banks globally are embracing for digitizing the user experience for banking to achieve accuracy, security, speed in-process and cheaper processing cost for remittance i.e. P2P (Peer to Peer), B2B (Business to Business), B2I (Business to Individual) and eCommerce transactions. The objective is to achieve low-cost remittance and payment intermediation ecosystem using open and transparent blockchain technology.
There are ongoing debates on acceptance of cryptocurrency as a medium of exchange, however, Islamic Banks are getting themselves ready to embrace blockchain technology, which follows Shariah (Islamic law). There have been initiatives by Al Rajhi bank to adopt ‘Ripple’s ecosystem for remittance and payments. This shows the acceptance level is increasing amongst the Islamic Bank. Blockchain technology is reverberating across the entire global financial ecosystem and early adopters will have a better advantage. Islamic Banks must be prepared as disruption has already started by FinTech companies and the acceptance level at consumers is increasing. The need of the day is leverage on the open nature of rebittance to innovate the remittance models and provide a better user experience. There are limited first movers to use blockchain for remittance and payments especially in Islamic finance, hence it provides limitless opportunities for Islamic Bank to embrace it.
This presentation provides overview on the traditional remittance, rebittance platform, perform a comparison with traditional models and models practised for processing remittance transactions in compliance with Shariah (Islamic Law) principles. It also provides a viewpoint on available opportunities available for Islamic bank and Fintech companies to explore and embrace.
Huincoin white paper:here are everything you want to know about huincoinNpack Machinery
Huincoin white paper:here are everything you want to know about huincoin
Huincoin
Huincoin is a global leader in the blockchain revolution.
We operate the premier U.S.-based blockchain trading platform, which is designed for customers who demand lightning-fast trade execution, dependable digital wallets, and industry-leading security practices.
Blockchain Incubators
We believe in the potential of blockchain and its ability to provide groundbreaking solutions.
To promote innovation in the industry, we are working with teams around the world to advance new, inventive tokens that could potentially transform the way goods, services and operations are managed globally.
ABOUT HUINCOIN
Founded in 2017 by three cybersecurity engineers, Huincoin is the premier U.S.-based blockchain platform, providing lightning-fast trade execution, dependable digital wallets and industry-leading security practices. Our mission is to help advance the blockchain industry by fostering innovation, incubating new and emerging technology, and driving transformative change.
FirstPartner's 2016 Blockchain Ecosystem Market Map helps to decrypt the blockchain landscape with a visual overview of the emerging ecosystem, players, technologies and trends. It clearly summarises three main areas of focus emerging around the core blockchain or distributed ledger protocols:
1) Bitcoin and Cryptocurrencies: Providing an alternative to centrally managed "fiat" currencies, this sector includes Bitcoin exchanges, Bitcoin wallets, miners and cryptocurrency payment processors. The map illustrates how these companies interact and features some leading players including Coinbase, Circle, Kraken and 21 Inc.
2) The Financial Services Blockchain: This has been the main area of focus over the last 12 months as attention shifts from Bitcoin to Financial Services applications. An increasing number of players are focussing on commercialising blockchain technologies for banks, securities, derivatives and asset markets and institutional investors - and are attracting VC funding to do so. Ripple and Ethereum are leading candidate protocols for payment processing and smart contracts and players including Ripple, Chain and Digital Asset Holdings are gaining traction with Financial Institutions. The Map highlights leading technology companies and some of the banks, card schemes and processors who are investing in or evaluating distributed ledger technologies.
3) Other Use Cases: The distributed ledger concept and its ability to support transparent and tamper-proof asset registration, proof of ownership and asset transfer transactions makes it potentially applicable to multiple non financial use cases. The Map highlights a number of candidate use cases including publishing, legal, distributed data storage, document management and IoT. Some of the pioneering initiatives and companies exploring these applications are included.
Crucially the Map also provides a clear pictorial explanation and summary of the leading protocols at the heart of the ecosystem and concepts including coloured coins and smart contracts that supplement them to make a number of the proposed services possible.
A printable version of the map can be downloaded from www.firstpartner.net.
Smart Contract is one of the greatest features supported by revolutionary Blockchain Technology. It is because of smart contracts blockchain is finding its adoption in every sector and going to create disruption in the way we are going to do exchange among each other.
This ppt covers basics about what is smart contracts and its use cases.
Smart Contract is gaining popularity globally. The objective of this presentation is to provide an overview of smart contract, types, components, technologies and use cases.
Global payments community supplemented revenues, income and earnings per share information determined in accordance with GAAP by providing those measures on an adjusted basis in this earnings release to assist with evaluating performance. In addition to GAAP measures, management uses these non-GAAP measures to focus on the factors the company believes are pertinent to the daily management of our operations
P2P Lending Business Research by Artivatic.aiArtivatic.ai
Financial Lending or P2P Lending is going to play important role in the economy of entire world including India. Artivatic conducted Lending (P2P) research to understand the sector specific problems, growth and opportunities and also the use of technologies.
#lending #p2p #fintech #banking #insurance #payments #accounts #bfsi #deeptech #artivatic #startups #technology
Blockchain is already disrupting several industries, with opportunities for radical improvement of existing business models. But still banks and financial institutions are the ones likely to realize the highest benefits of adopting Blockchain.
As trade finance is getting a lot of attention, we will see here how in a single letter of credit transaction Blockchain can introduce significant improvements to a lot of banking activities in addition to trade finance:
• Trade finance
• KYC and AML
• Regulatory compliance
• Syndicated lending
• Payment settlement
• And Nostro Reconciliation
Future of Money, Banking & Payment Industry (it-Cafe.ir)Masoud Zamani
از «اپل پی» تا بیتکوین، از پرداختهای همتا به همتا تا حجم بسیار بالای رمیتنس در جهان، از انبوهی استارتآپهای متنوع در صنعت پرداخت و بانکداری تا نفوذ عجیب پرداختهای موبایلی در کشورهای توسعه نیافته نظیر کنیا، همه روزه شاهد اخبار متنوع و البته رشد بی سابقهای از حضور و و نفوذ فناوری در این صنعت هستیم. نکته جالب اینکه بخش عمدهای از کسانی که احتمالاً آینده پول و صنعت پرداخت را رقم خواهند زد، شرکتها فناور نظیر اپل، سامسونگ و یا گوکل هستند که هیچ تجربه بانکی و سابقهای در این بخش ندارند و کمتر اسم بانکها را در این جریان میشنویم. براستی چه اتفاقی در حال رخ دادن است.
در این ارائه با عنوان «آینده پول، صنعت پرداخت و بانکداری» روندهای فناوری اثرگذار بر پول و صنایع پرداخت را بررسی کرده و آینده و جایگاه بازیگران فعلی و البته نوع نگرش به پول را بررسی خواهیم نمود.
----
Videos:
Part 1: http://www.aparat.com/v/WpbRj
Part 2: http://www.aparat.com/v/xdW5b
Part 3: http://www.aparat.com/v/3NWDG
Part 4: http://www.aparat.com/v/1ZL93
How does blockchain developer help improving the banking & finance sector Blockchain Council
We need to understand why there is a need for syncing Blockchain technology intervention in the banking and finance sector. To understand this, let us have an insight into the current problems that surround the banking sector:
Brugu – Being a Leading DeFi Development Company in India, We offer end-to-end Decentralized Finance Development Services on DeFi Insurance, DeFi Lending and Borrowing, DeFi Yield Farming, DeFi Decentralized Exchange, DeFi Wallet, DeFi Smart Contract Development, DeFi Staking, DeFi DApp Development, DeFi Tokens Development, and many DeFi custom services.
KYC or “Know Your Customer” procedures are used by banks and other financial institutions to obtain information about the identity and address of the customers.
Check out the full details
https://bit.ly/2S5JnGj
Takeaways from the Financial Action Task Force's Guidance on Virtual Assets a...Lesa Moné
On Thursday, October 28th, the Financial Action Task Force (FATF) released its latest guidance for virtual assets, introducing new and updated requirements for the industry.
These slides are from a webinar where the Notabene team summarized the most important takeaways from the updated FATF guidelines, discussed their implications, and highlighted how Notabene can help cryptocurrency businesses comply with the latest guidance.
The global bond market is in a stage where returns are muted and any efficiency will be a huge plus. While regulatory costs, transaction costs and issuance costs eat away a part of the meagre returns, continuous credit risk monitoring and lack of liquidity have been major concerns. The presentation looks at the nature of processes involved in the issuance and trading of bonds and identifies the pain points of the market participants. Then it discusses how we may come up with a solution for solving the bond market’s pain points by maintaining the market on an ecosystem of blockchains. A possible blockchain design for the market is described and the roles that the participants may play in the new ecosystem is elaborated. Blockchain’s inherent services help in
(1) Streamlining the issuance where all participants work in real time on common datasets and
(2) Trading of bonds by eliminating duplicative steps & shrinking the settlement cycle
The reduction in issuance time and settlement time, in turn, reduces market participant’s costs, risks and capital locked up. This solution design may have other positive side effects like improving liquidity, more transparency and easier asset servicing. The presentation concludes by looking at the evolving landscape and strategies that market players may adopt to stay in the forefront.
Gharar Free ReBittance – Powered by BlockchainLokesh Gupta
ReBittance can be defined as remittance backed by Blockchain technology instead of a traditional model based on a centralized network. Blockchain technology facilitates the use of digital assets such as cryptocurrency to process payments using unique secured shared electronic ledger. This unique feature of blockchain technology eliminates gharar (uncertainty) and make transaction processing cost-effective (low fee - ujr) and facilitates financial inclusion for unbanked such as migrant worker remittance to their home country. Another advantage is impenetrability, making it difficult to compromise as everything is tracked on a ledger which stops people from spoofing it or creating fake data. Blockchain strengthens the payment ecosystem by providing limitless opportunities in the usage of digital assets, payments, remittance and implementation of smart contracts. Islamic Banks globally are embracing for digitizing the user experience for banking to achieve accuracy, security, speed in-process and cheaper processing cost for remittance i.e. P2P (Peer to Peer), B2B (Business to Business), B2I (Business to Individual) and eCommerce transactions. The objective is to achieve low-cost remittance and payment intermediation ecosystem using open and transparent blockchain technology.
There are ongoing debates on acceptance of cryptocurrency as a medium of exchange, however, Islamic Banks are getting themselves ready to embrace blockchain technology, which follows Shariah (Islamic law). There have been initiatives by Al Rajhi bank to adopt ‘Ripple’s ecosystem for remittance and payments. This shows the acceptance level is increasing amongst the Islamic Bank. Blockchain technology is reverberating across the entire global financial ecosystem and early adopters will have a better advantage. Islamic Banks must be prepared as disruption has already started by FinTech companies and the acceptance level at consumers is increasing. The need of the day is leverage on the open nature of rebittance to innovate the remittance models and provide a better user experience. There are limited first movers to use blockchain for remittance and payments especially in Islamic finance, hence it provides limitless opportunities for Islamic Bank to embrace it.
This presentation provides overview on the traditional remittance, rebittance platform, perform a comparison with traditional models and models practised for processing remittance transactions in compliance with Shariah (Islamic Law) principles. It also provides a viewpoint on available opportunities available for Islamic bank and Fintech companies to explore and embrace.
Huincoin white paper:here are everything you want to know about huincoinNpack Machinery
Huincoin white paper:here are everything you want to know about huincoin
Huincoin
Huincoin is a global leader in the blockchain revolution.
We operate the premier U.S.-based blockchain trading platform, which is designed for customers who demand lightning-fast trade execution, dependable digital wallets, and industry-leading security practices.
Blockchain Incubators
We believe in the potential of blockchain and its ability to provide groundbreaking solutions.
To promote innovation in the industry, we are working with teams around the world to advance new, inventive tokens that could potentially transform the way goods, services and operations are managed globally.
ABOUT HUINCOIN
Founded in 2017 by three cybersecurity engineers, Huincoin is the premier U.S.-based blockchain platform, providing lightning-fast trade execution, dependable digital wallets and industry-leading security practices. Our mission is to help advance the blockchain industry by fostering innovation, incubating new and emerging technology, and driving transformative change.
Global trade of goods has been growing at double-digit rates since the early 2000s. Digitzation had its time; but still we have manual paper based work exsisitng in most of the Trade finance activities. Now is the time to see value addition from Blockchain based platforms and how they can make this process faster, reliable and paperless.
Guarantees are generally used to cover the risk of a contracting party failing to fulfill its agreed obligations
(such as non-payment or delivery). Collateral can be used in open account trading as it complements
collection efforts and documentary credits. A guarantee is a type of protection that one party imposes on the
other party in a transaction in the event that the second party fails to fulfill its obligations according to
predetermined specifications. In this case, the first party receives a predetermined amount of compensation
from the guarantor, while the second party is required to return the payment. This paper provides an in-
depth analysis of the areas of automating bank guarantees in electronic form and provides a comprehensive
analysis of all procedures and processes related to bank guarantees management.. Through this service,
suppliers will be able to issue the bank guarantee electronically and conduct all operations related to the
management of the bank guarantee without need to visit the bank, which contributes to increasing
operational efficiency, eliminating fraud and contributing to digital transformation. This service will also
contribute to reducing costs and limiting waste of time and effort. It will also allow the beneficiaries to
easily follow up all related operations, including extension, cancellation, liquidation and confiscation of
guarantees without the need of human intervention.
ELECTRONIC LETTER OF GUARANTEE FOR BANKING SYSTEMijcsit
Guarantees are generally used to cover the risk of a contracting party failing to fulfill its agreed obligations
(such as non-payment or delivery). Collateral can be used in open account trading as it complements
collection efforts and documentary credits. A guarantee is a type of protection that one party imposes on the
other party in a transaction in the event that the second party fails to fulfill its obligations according to
predetermined specifications. In this case, the first party receives a predetermined amount of compensation
from the guarantor, while the second party is required to return the payment. This paper provides an indepth analysis of the areas of automating bank guarantees in electronic form and provides a comprehensive
analysis of all procedures and processes related to bank guarantees management.. Through this service,
suppliers will be able to issue the bank guarantee electronically and conduct all operations related to the
management of the bank guarantee without need to visit the bank, which contributes to increasing
operational efficiency, eliminating fraud and contributing to digital transformation. This service will also
contribute to reducing costs and limiting waste of time and effort. It will also allow the beneficiaries to
easily follow up all related operations, including extension, cancellation, liquidation and confiscation of
guarantees without the need of human intervention.
The financing of the international trade of goods — and the underwriting thereof — implicate a many-staged process of manufacture, storage, movement, delivery, inspection, and vending. The parties involved are many. The documentation of rights and responsibilities used to fill a small library of paper, and now involves paper, electronic communication, and some digital information transfer. Many points of delay and potential contention persist. Can blockchain clean this up? What other technological developments are reshaping trade finance?
Part of the webinar series: Blockchain Basics 2021
See more at https://www.financialpoise.com/webinars/
The financing of the international trade of goods — and the underwriting thereof — implicate a many-staged process of manufacture, storage, movement, delivery, inspection, and vending. The parties involved are many. The documentation of rights and responsibilities used to fill a small library of paper, and now involves paper, electronic communication, and some digital information transfer. Many points of delay and potential contention persist. Can blockchain clean this up? What other technological developments are reshaping trade finance?
Part of the webinar series: Blockchain Basics 2022
See more at https://www.financialpoise.com/webinars/
Can Technological Soldiers Like Blockchain & AI Help Banks Prevent Bad Debts?aNumak & Company
Using blockchain and artificial intelligence, it is possible to reduce the number of bad debts radically by providing better insights and better digital infrastructure.
Blockchain Smart Contracts - getting from hype to reality Capgemini
The potential of smart contracts – programmable contracts that automatically execute when pre-defined conditions are met – is the subject of much debate and discussion in the financial services industry. Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional financial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, inefficiencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the
finance system and reducing risk, create overhead costs for and increase compliance requirements.
In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with financial services industry professionals, prominent smart contract startups and academics (see Research Methodology at the end of this paper). Our study confirms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more efficient business processes across all major segments of the financial services industry. These benefits will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of firms to share a common view of the contract between trading parties. Consumers will benefit from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.
The article explores possibilities of using the blockchain as a replacement for a KYC Registry , as a Digital Signature / Digital Identity solution and for UBO (ultimate beneficial owner ) tracking.
Decrypting Insurance Broking through BlockchainCognizant
Blockchain technology could help brokers maximize their operational efficiencies by using smart contracts to automate key processes, freeing them to focus on value-added services that drive customer loyalty.
INFOGRAPHIC: Smart contracts between hype and realityCapgemini
INFOGRAPHIC: Smart Contract Lifecycle. When will Smart Contracts Become Mainstream? What are the Opportunities in Financial Services Industry? Key Challenges in Smart Contract Adoption Smart Contracts: Breaking the Chain between Hype and Reality
5 companies using blockchain to revolutionize insuranceBlockchain Council
Blockchain is one of the most revolutionary technologies that has paved the way for transformational changes across the different industry segments. Among the different businesses that benefit from Blockchain, the focus of this blog will be on the insurance segment. Claim settlement, KYCs, paperwork and other issues consume a lot of time and money.
Blockchain in Banking: A Measured ApproachCognizant
Here's our foundational view on what the financial services industry needs to consider as organizations move from ideation to experimentation to pilot deployments of blockchain.
Similar to Blockchain - Impact on Loan & Credit (20)
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
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1. Blockchain: Impact on Lending in Indian Context
Blockchain and crypto currency is the buzzword now, but, it is important to assess if blockchain going to
have real disruptive effect on current financial ecosystem and introduce efficiency in existing processes.
In this quest, I started exploring the technology and since I come from Banking, specifically, Small &
Medium enterprises lending domain, I shall restrict myself to applications/ideas aimed at disrupting
lending and credit underwriting process. The approach is to, highlight the development in Blockchain
technology, smart contract use, crypto currency economy, and its likely impact on traditional finance,
along with area of concern in its wide adoption. By disruption I mean substantial reduction in cost of
borrowing, new product availability for a particular segment, efficiency gain, elimination of intermediary
and reduction in turnaround time. Also, time horizon taken is 3 to 20 years for the disruptive effective to
be visible on ground. (Please don’t consider it as investment advice for few of the startups I mention, and
I only intend to highlight their technology and likely impact).
1. Collateral tokenization
Simplest way to define tokenization in context of blockchain is to bring the real world assets on
digital platform. In past assets like shares, fiat currency has been dematerialized and digitized.
With emergence of blockchain technology, for the first time, real estate property, art, Gold can
be tokenized, owned and transferred from one person to other in digital world. These assets are
non-fungible nature. The immutable characteristic of blockchain technology also helps
safeguarding the ownership of assets and provide details of past ownership track record. ERC-
271 tokens on Ethereum blockchain can be one example of such assets representation on public
blockchain.
Tokenization of assets when combined with smart contract can be used not only for assets backed
lending by banks, but also help domestic p2p lending market to explode. It can be further used
for fund raising for new real assets and enable micro ownership. Few blockchain startups like
Atlant, BrickBlock, LAtoken, Digix are targeting Few of state governments like AP has taken lead
in property registration on blockchain on trial basis.
Disruptive effect-Currently when asset is to be provided as collateral for collateralized lending,
banks go for legal vetting so as to check and verify the assets ownership. Details like sale deed,
tax deed, tax paid receipt, encumbrance certificate, plan approval copy are checked to
authenticate for clear marketable title. Incomplete or partial information leads to lower valuation
of property or non-acceptance of collateral. With real estate assets moving to blockchain, the
immutability and chain record of asset transfer from one person to other helps in assessing clear
legal ownership, provides efficiency gain and reduce the TAT from current 7-12 days to few hours.
Also,anempaneled valuers appointed by bank goes to inspect the property, and find the valuation
of property. With tokenization of assets on blockchain, the valuation can be ascertained in real
time by comparing the property database in nearby areas and inspection may be required in few
specific/complicated cases. Again, this will provide better valuation of property for seller and
informed purchase decision by buyer and availability of higher funding for borrower due to
increased valuation.
2. Concerns- Necessary state legislation will be required to provide legal validity to such transaction
so that smart contract and assets tokenization stands in local court of law, enforceability being
the end objective. The real estate market being highly dispute prone, the initial data being put up
on the blockchain requires to thoroughly validated. For the system to work seamless in real time,
other statutory data bases, like property tax database would be required.
2. Working capital/Term loan/ consumer loans- Working capital is commonly borrowed
banking product, availed to meet liquidity gap, on account of delay in payment to be received
from customer , while the business needs cash for its raw material purchase & labour salary to be
paid to meet next order. Another product like Term Loan/consumer loan, is required to be paid
for capital expenditure in case of business and consumer loan in case of retail segment. Final
interest rate to end customer depends on multiple factors like cost of fund paid to depositor,
asset quality behavior, and profit margin of banks. The interest rate varies from 10-14% p.a. in
case of loan in INR currency for business loan and personal loan in range of 12-18% p.a.
With advent of blockchain based decentralized P2P global lending platforms like Ethlend, Fintrux,
Lendoit, Ripio Credit Network, invoice financing platform Populous, the lender and borrower can
enter into mutually agreed terms on Libor linked interest rate, flexible payment schedule, and
collateral terms. The loans are mostly in crypto currency and few like Salt in Fiat currency. The
crypto currency loan can be converted in Fiat currency by using exchanges.
Each of these platforms have different ways of addressing credit risk. Few methods are like
collateral coverage of 120-150%, creating collateralization pool wherein each borrower pays
certain amount like 2-5% of loan availed as collateralization reserve, and lenders are paid out from
the collateral pool in case of default. It is similar to insurance product wherein, assumption is, only
a few loans will go default. Another method is bringing a co-signer from the same country location
as that of borrower. Cosigner knows the local legal framework, and can act as guarantor on behalf
of borrower. There is a startup called Bloom, working to emerge as global credit bureau on
distributed platform, with enhanced security and trying to act as bridge between traditional and
crypto world. Bloom score can also be used for p2p global lending.
In traditional world, Banks would act as intermediary and undertake credit risk, avail libor linked
deposits from its depositors, and, lend to its borrowers at prevailing rupee interest rate and
charge for hedging cost and take credit risk on its balance sheet. In the blockchain world, partial
credit risk is taken by lender directly, or guarantor. The crypto currency volatility risk held is taken
as per the mutual agreement of borrower & lender.
Disruptive effect- There is possibility of reduction in cost of borrowing down from current base
rate linked 12-18% to Libor linked 7-8 % even lower than SBI base rate.!!. Never before has there
been possibility of providing such lower interest rate to small micro borrowers or consumer
segment. Traditionally mid corporate and corporate companies has been availing such loans in
form external commercial borrowing, foreign currency loans and foreign currency bond issuance.
3. With advent of blockchain technology and crypto currency, low cost loan with lower transaction
cost can be availed by SME and consumer loan borrower.
Concerns- Only a few of the startups have full built in products with relevant traction and none
have reached stage of stability, hence robustness of underwriting practices, behavior pattern of
participants ie borrower, underwriter, guarantor during stress is not known. Also, since it involves
cross border movement of funds, the related legal framework like anti money laundering, Foreign
exchange Management Act, Payment & settlement act and regulatory guidelines from RBI,
Finance ministry, or SEBI is not known and big risk to this type of lending.
3. Bank Guarantee- Traditionally, bank guarantee as product is required when a task is being
outsourced to a contractor, it is required to assess financial strength of bidder before contract
being awarded. Other usage is post completion of project work, performance guarantee is
required upto the value of around 5-10% of project cost to be provided by contractor as guarantee
for project to meet operational parameter. Here the outsourced agency gets bank guarantee
issued on their behalf to outsourcing agency (Principal) by their bank without deposit of initial
bidding amount. In case of default by outsourced entity, the principle gets money directly from
the bank, no questions asked. For banks, its part of their regular business model to take credit risk
and issue bank guarantee in leu of fees.
In context of blockchain, the smart contract can be utilized to provide the same products by banks
to their customer at public blockchain platform or permissioned blockchain. The terms of bidding
are encoded into smart contract and in case of invocation or default the money gets automatically
transferred to the principal. The satisfaction of terms can be encoded using the oraclize feature
of smart contract and only authorized person with permissioned authenticity can enter the
details.
Disruptive effect- In terms of benefit, the process will move from paper based to digital platform.
It will enable higher business efficiency with real time notification to all stakeholders. Since it will
be on immutable blockchain platform, terms & conditions cannot be tempered with or changed
only with consent of all the permissioned entities.
Bank guarantee facility using smart contract is independent of currency being used, hence the not
limited to crypto currency only. It also removes the inefficiency in terms of cross border bidding
on contract. Currently for any global tender to be bid, the bidding agency needs to provide bank
guarantee only from recognized bank or the bidder’s bank should have correspondent
arrangement with other globally recognized bank. With use of smart contract, only the amount in
terms of required currency kept into contract address is important and all the stakeholders can
mutually decide upon smart contract being used. Trust is replaced by code.
Concerns – The operational parameters being encoded or oraclize for input value can be
subjective. Also in scenario of change in scope, there may requirement for modification in terms
of invocation or recall, this may difficult in public blockchain. Also, in case of cross border bidding,
the issue or regulatory and statutory compliance may appear.
4. 4. Letter of credit- LC being the often used product for global trade with banks of exporter and
importer acting as trusted agents in the transaction. Whenever importer wants to import goods
from across other country, there is issue of trust, wherein even if exporter may agree to export
products, but what is guarantee that goods will be received post payment of money, also there
how to monitor quality of product. On the other hand, for exporter, there is risk of non payment,
wherein products are shipped, but the importer may not make good the payment. In order to
facilitate, the banks of respective parties act as trusted agents to facilitate trade transactions. On
request of exporter, his bank issues LC inname of importer. Post LC issuance, all trade transactions
documents, bill of lading documents, quality certification documents ,are routed by exporter
through his bank to importer’s bank. Post receipt of documents from exporter, importer then
reclaims goods at customs, payment is done by importer bank to exporter’s bank and eventually
to exporter.
In current setup, there are multiple parties dispersed across geographies, in different time zones
like, exporters, importer, exporter’s bank, importer’s bank, correspondent banks, quality
certification agencies, logistic agents, insurance companies, Cargo moving ship, customs offices
of respective countries, material supplier in case of merchant sale etc. Involvement of multiple
parties, with physical movement of papers and goods result into multiple inefficiencies cropping
up and unnecessary delay.
Permissioned blockchain platform with trusted nodes can serve as alternative solution to current
facility. Each of these participants from across the world can be registered as trusted nodes,
authenticating, auditing & verifying the goods movement with help of Internet of things
technology and GPS updation. The requirement of physical transfer of documents can be l
completely eliminated and provides the real time tracking of the transaction which can be trusted
and is immutable, visible to all stakeholders. A smart contract can be deployed , with input from
each of players, or oraclize real time data using API into smart contract for its execution.
Disruptive effect : Removes the use of paper based verification and related in-efficiencies like
typo, spelling mistake, etc. It also enables real time online tracking of goods by stakeholders. With
supply chain automation, and increasing use of sensors, humungous data produced in
international trade will enable all the players in real time decision making, design of suitable
products by insurance and banks, and efficient co-ordination among players. Blockchain projects
like cross border payment solution provider -stellar, trade finance solution providers in African
Market – Kommerce , internet of things focused - IOTA , lending platforms etc when used together
in context of international trade finance can have disruptive effect, even to the extent of
eliminating big monolithic banks from the entire process.
Concerns : Multi stakeholder being involved in process and sudden change in their behavior and
mindset is likely to take time. Each players coming from different industry have their own data
requirements, operate under varying legal and regulatory framework and standardization is only
possible when an international association and governments come together towards
implementing the same. Different blockchain projects dependence also results into possible
delay.