Middle East’s banking group Emirates NBD and India’s largest private sector bank ICICI have partnered with Infosys to pilot blockchain-based network for international remittances and trade finance.
Emirates NBD and ICICI Bank chose to partner with EdgeVerve, a wholly owned product subsidiary of Infosys, for the pilot.
With this, Emirates NBD became the first bank in UAE and ICICI Bank, the first bank in India, to pilot a blockchain-based network for financial services.
With the blockchain network in place, both banks expect automation of inter-bank processes through smart contracts, secure digital exchange of documents and real-time monitoring of positions through integrated dashboards. Consequently, this will lead to significant cost savings for the business.
Both, Emirates NBD and ICICI Bank run Finacle solutions suite and have leveraged the blockchain framework to route business transaction between the two entities for remittances and trade finance business.
Using the EdgeVerve Blockchain Framework for Financial Services, Infosys said, the network was successfully piloted on the UAE-India remittance corridor, one of the busiest corridors for both banks.
According to the World Bank, this corridor is the largest receiver of remittances with a share of close to $70 billion out of the $580 plus billion world over.
Vishal Sikka, Chief Executive Officer & Managing Director, Infosys said: “Blockchain technology offers unprecedented opportunities to transform banking as we know it. Like any innovative technology, the usage of blockchain-based applications will gradually increase from early adopters to others who will join based on proven and tangible benefits.”
The global blockchain technology market is projected to grow from $210.2 million in 2016 to $2,312.5 million by 2021.
Growth is forecast to lead by infrastructure and protocols provider segment while media and entertainment vertical to have the highest growth rate during the forecast period.