The Bank for International Settlements Innovation Hub (BISIH) center in Hong Kong SAR and the Hong Kong Monetary Authority (HKMA) on August 3 announced the launch of a Tech Challenge named Digitizing Trade Finance. This challenge is in a bid to locate, identify, and empower new techs as a solution for advanced Trade Finance.
The challenge is organized in Collaboration with key Trade Finance players like the International Chamber of Commerce (ICC) and the Institute of International Finance. This mission became pertinent because of the impact of Covid19 on the Global economy, especially the trade finance sector. It cannot be overemphasized that the Small and Medium Enterprises (SMEs) have taken the largest blows. As we reported earlier on The Currency Analytics that the ICC 2020 Survey revealed that the lack of inclusion of SMEs in global trade is a data problem.
BISIH highlighted three major problems in Trade finance that they want innovative projects that are applying for the TechChallenge to solve which are Interoperability between key players of trade finance, Trade finance inclusions for SMEs, and Trade finance functionalities for emerging markets.
Xinfin Hybrid Blockchain designed as an enterprise-ready blockchain has Tradefinex which focuses on providing innovative solutions to problems in Global Trade Finance. Tradefinex, an innovative use case of Xinfin is a perfect fit as a solution to the problems listed by BISIH.
Tradefinex is an interoperable platform with other Trade Finance digitization platforms like Tradeshift, Intuit Quickbooks, Corda, and Oracle. With the aid of Xinfin Decentralized Ledger Technology, the platform connects both ban and non-bank funders securely. With the KYC system on Tradefinex, the facilitation of access by corporates through Digital identification and KYC remains seamless and easy. Thus it complies with AML and other relevant laws. It offers an API to bulk upload documents, Generate Multi-document contracts, and Deploy them.
The Team from Xinfin in a release introducing Tradefinex from 1st October 2018 stated:
“We are in the process of on-boarding governments, global trade associations, SMEs, financial institutions, and beneficiaries on our platform.”
Tradefinex on April 24, 2020, tweeted:
“Investors looking for best business plans to invest can check @tradefinex for funding projects.”
In an announcement after securing Andre Castermer as an Advisor, he stated:
“SME financing remains a huge opportunity for alternative lenders, incumbents. The availability of advanced technology with progressive regulatory action offers new business opportunities for SME-focused lenders. The XinFin digital asset infrastructure is designed to be regulated under community-driven governance models and through regulated institutions”
These words point to the fact that Tradefinex has already set up a specific, easy to use, and ready-made solutions to onboard SMEs which has the potential to leverage all form of transactional data such as e-commerce data, mobile payments, logistics data, etc.
One of the major selling points for Tradefinex is that it is easy to use. The Developers are cognizant of the fact that getting developers to digitize or tokenize transactional data such as letters of Credit, Bills of Laden, Invoice, etc. can cost a lot of money for businesses (maybe this is one of the reasons) why Banks are so afraid of Digitization. This way, they made the Tradefinex platform very easy, with simple steps anyone can tokenize, and deploy a smart contract. There are walk-through videos to simplify the process.
All the features explained above are a few of Tradefinex features that directly and perfectly fit the criteria listed by BISIH in their problem statements. There is no doubt that the winner of the TechChallenge has already surfaced even before the submission date ends if and when Xinfin’s Tradefinex applies. The community is also excited and confident that Xinfin is a winner already if the developers apply for the challenge. In a tweet, while commenting on BIS press release, XinFin Warrior (@XinfinWarrior) said:
“Xinfin for the win! Exciting times ahead!!”
The Bank for International Settlements Innovation Hub (BIS) was created in 2019 to identify trends in financial technology and develop insights as it relates to banks to serve as a reference point to improve the global trade finance with innovations for bank experts.
Which Trade Finance focused Project come close to Xinfin’s Tradefinex as a fit for BISIH’s TechChallenge?
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Thank You, The TCAT team.
I am Ayobami Abiola from Nigeria. I am a Cryptocurrency enthusiast who like to write about creative and great innovations- The wonders of the blockchain technology.
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