The Trade Finance Advisory Group (TFAG) of Global Shipping Business Network (GSBN), an independent technology tech consortium building a blockchain-enabled operating system designed to redefine global trade, has reached a new milestone, with the first proofs-of-concepts for trade finance products since its launch in September last year.
GSBN’s Trade Finance Advisory Group consists of Bank of China (Hong Kong) Limited (BOCHK), DBS Bank and the Hongkong and Shanghai Banking Corporation Limited (HSBC).
Its goal is to utilise blockchain technology to digitally enhance trade finance by improving the end-to-end operational efficiency, as well as data transparency in the supply chain.
After half a year, GSBN has reached proofs-of-concepts for two trade finance products, Open Account and Letter of Credit, which utilise reliable data directly from the shipping industry via GSBN.
Regarding the Open Account, applicants have the option to authorise their bank to request direct Bill of Lading data through the GSBN blockchain platform for their proof of shipment.
In the same vein, Letter of Credit applicants can authorise their bank to use an electronic Bill of Lading (eBL) application created on GSBN’s platform to obtain relevant eBL information and order a title transfer.
These digitally-enabled trade finance solutions enable small and medium-sized businesses to have quick and fair access, while financial institutions, manage better risk, cost-effectiveness and overall customer experience.
“Reaching proofs-of-concepts of trade finance solutions is a testament to the commitment and momentum of this group, that we are accelerating the development of scalable, real-world solutions to bridge the global trade finance gap,” commented Bertrand Chen, CEO at GSBN.
