Recently technology giant Deloitte and the apex trade association of India, Assocham conducted a study recently. The report said, implementing technologies such as Blockchain, Artificial Intelligence, Machine Learning and others will solve existing inefficiencies in our current trade and financial system.
Blockchain’s application for identity management and know your customer (KYC) looks quite promising,” stated the study titled, ‘Role of trade finance for inclusive growth. Banks in India should start conducting POCs (proof of concept) in this DLT (distributed ledger technology) to get a deeper understanding of its (blockchain technology) implications from the dimension of deployment in trade finance.”
However, before the implementation takes place, various government forces to take into account numerous factors such as changing role of banks, acceptance in regulations, users’ willingness, and also small businesses that are a part of the ecosystem.
Apart from Blockchain technology, the report said Artificial Intelligence is also growing exponentially and has the potential to detect quality of transactions or opportunity to market cross channels to make sure there is optimum utilization of banks’ resources.
Although the study noted that the current government had played an important role in 2017 to turn-around the Gross Domestic Product and had significantly improved the ease of doing business, it still had a long way to go.
The report said, “India significantly lags on key metrics such as: turn-around time and operating costs, reliance on physical documentation, requirement of liaison with multiple stakeholders on disparate systems and lack of transparency, increase the cost of compliance. These limitations, limit trading volumes, which in turn limit the speed and efficiency of trade finance.”
This report is especially legitimate in the light of recent events where a prominent jeweller, Nirav Modi, fled the country after allegedly duping Punjab National Bank out of Rs 11,400 crore. Crypto-News, on the occasion had opined that if banks used blockchain technology, this could have been avoided.
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