Fluent Featured in Citi Bank US Digital Banking Research Report

Full Report — https://www.citivelocity.com/t/eppublic/w3oB

Citi Bank Research Report

Fluent was recently featured in Citi Bank 2016 Research Report on US Digital Banking as a leader in financial supply chain initiatives in the blockchain space. Citi identified great potential in Fluent’s enterprise platform for streamlining global trade by both connecting banks, buyers, and suppliers on a distributed financial network. They also saw advantages in Fluent’s approach to reducing risk and improving efficiency in supply chain financing by tokenizing receivables on the blockchain and selling them on a global, multi-lender marketplace. We encourage you to download the full report and read the following excerpts on Fluent below.

“By combining buyers, suppliers, and banks, Fluent can provide a common platform which would greatly facilitate treasury management, as well as auto-reconciling accounts payable. This is solving an important problem for corporates, and if the network can take off, we see a lot of potential in this approach.” — Citi Bank US Digital Banking Research Report

“Fluent has a functioning marketplace to sell receivables digitized using blockchain technology — Fluent is a private company aiming to create a network of buyers, banks and suppliers brought together on a permissioned blockchain that allows for the digitization of receivables that can be trade amongst participants. This enhances the ability for firms to get financing, while helping with reconciliation since all the necessary actors for an end-to-end business process are on the same platform. Digital assets reduce fraud (e.g. selling the same invoice twice), and improve visibility across the supply chain through the use of a distributed ledger.” — Citi Bank US Digital Banking Research Report

The section on fluent continues…

“…and Fluent is Also Building a Network that Enables Instantaneous B2B Payments and a Market for Digitally Native Receivables

 Fluent is taking a practical approach to launching a blockchain network of banks, buyers, and suppliers, which allows for companies in the supply chain to avoid the current headaches of handling multiple databases, easily paying invoices in a P2P manner and creating a marketplace for native digital receivables.

This could potentially be disruptive to existing marketplaces like Taulia and PrimeRevenue. We believe that by bringing banks and corporates onto the same blockchain network, a lot of value can be unlocked as a result of all players operating on the same platform.

 Fluent’s permissioned blockchain provides a marketplace for native digital assets… — Fluent’s blockchain is permissioned, with banks and corporates acting as the nodes. The company is in very early stages, and currently one bank has invested, and another large US bank is conducting a pilot.

This creates a network where buyers and suppliers can easily obtain financing by selling natively-issued receivables, which brings a number of advantages over the way it is done today.

Issuing receivables on the blockchain ensures that fraud is reduced, as the receivable cannot be sold multiple times. Using a smart-contract with a digital receivable means that the rightful owner will automatically be paid on the due-date. This facilitates the reselling of receivables between multiple parties, even if they are separated by thousands of miles.

 …and having banks on the network allows for a bank-backed digital currency which can streamline payments… — The Fluent network has a native token that can be backed 1 for 1 by cash at the bank.

Companies on Fluent can therefore open an account with digital currency on the network, which can allow for instantaneous payments.

The digital currency is denominated in dollars (or any other fiat), and backed by the banks, so the risk is limited to the risk of banks failing. This is analogous to Ripple’s IOU system, where settlement ultimately happens on traditional rails. Although there is settlement risk, we see this as enabling payment and invoicing to be linked together which makes auto-reconciliation possible. Since the sums being exchanged are manageable for banks, we believe that the settlement risk is limited.

 …and can provide incremental benefits to the members of its network in the form of STP — By combining buyers, suppliers, and banks, Fluent can provide a common platform which would greatly facilitate treasury management, as well as auto-reconciling accounts payable. This is solving an important problem for corporates, and if the network can take off, we see a lot of potential in this approach. The risk is that multiple networks like this develop, and consequently decreases the utility.”— Citi Bank US Digital Banking Research Report

Read the full report at https://www.citivelocity.com/t/eppublic/w3oB