Amazing teammates of financing! Cathay Financial Holdings launches “Global Trade Sharing Blockchain’’ to realize alliance information sharing
Abstract｜Following the announcement of the “Electric Vehicle Internet of Vehicles Blockchain” in June, the Cathay Financial Holdings Blockchain has launched another attack: on September 22 this year, it will work with financial peers to launch the chain built by the Cathay Financial Holdings. “Global Trade Sharing blockchain”, by forming an interbank alliance to jointly provide more convenient digital financial services.
In 2020, the spread of COVID-19 pneumonia and economic turmoil has driven the trade financing needs of global companies. Financial institutions are also actively exploring innovative technologies and building more robust platforms to accelerate corporate financing efficiency and strengthen banks’ risk control capabilities.
Cathay Financial Holdings, Taiwan’s largest financial holding company, launched the “Electric Vehicle Internet of Vehicles Blockchain” news in June and then announced on September 22 this year, it will work with financial peers to launch the chain built by the Cathay Financial Holdings. “Global Trade Sharing blockchain” using Cathay team blockchain technology and combining the trade expertise of major financial institutions to form an interbank alliance.
In the future, alliance member banks will be able to share information on the chain, quickly check corporate trade-related information through this blockchain, improve corporate financing efficiency, and effectively prevent corporate inter-bank repeated financing.
Banks that have signed the Memorandum of Understanding (MOU) include The Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank, Sunny Commercial Bank, Bank SinoPac, etc. Many banks have expressed their willingness to actively participate.
In order to simplify the acquisition of freight document information, Cathay United Bank will also plan and interface relevant shipping data with international shipping companies such as CargoSmart, a global shipping logistics management platform, Evergreen Marine Corporation, and Yang Ming Marine Transport Corporation.
Motivation for development
Cathay Financial Holdings pointed out that import and export trade financing plays an important role in the bank’s international trade business. In the past, when verifying loans, companies had to provide heavy papers, and banks had to carry out complicated review operations, which was time-consuming and labor-intensive for both parties.
After the emergence of blockchain technology, when people have more and more imagination for its application scenarios, one of them is to realize “information sharing”: solving the problem of inefficiency caused by the reluctance of intermediary agencies to share user information with competitors in the past, and the pain points of users repeating the same process repeatedly in different fields.
In view of this, Cathay Financial Holdings’ “Global Trade Sharing Blockchain” makes good use of the non-tamperable and anonymous features of the blockchain information. In the future, when banks receive corporate financing needs, they will be able to protect transaction privacy on the chain. Quickly compare transaction and shipping documents, reducing the time it takes for bank operators to review documents.
This move will strengthen the verification of the credibility of relevant corporate logistics, cash flow and other trade information, and help banks strengthen their risk control capabilities and improve operational efficiency; customers can also simplify document provision, enjoy the benefits of rapid funding, and effectively increase funds Utilize efficiency and bring a win-win situation.
Zhang Wei-Ren, Associate of Cathay Financial Holdings Digital, Data & Technology (DDT) said:
“Compared with fighting alone, blockchain is more suitable for cross-company and cross-industry to make the pie bigger.
We look forward to continuing to use innovative technology and technology to improve the risk control capabilities of financial institutions and bring substantial benefits to the business.”
“Hyperledger” technology
This “Global Trade Sharing Blockchain” also uses the “Hyperledger Fabric” permissioned blockchain architecture with high data concealment as the previous “Electric Vehicle Networking Blockchain”.
Hyperledger was initiated by the Linux Foundation in December 2015. It mainly promotes the cross-domain application of blockchain and is a permissioned blockchain system. It is currently the world’s largest blockchain alliance with nearly 130 members, spanning multiple industries such as finance, the Internet of Things, and manufacturing, including the well-known technology giant IBM.
Using this technology will allow nodes on the channel to read historical data, giving the financial industry extremely high business development flexibility.
Alliance trend
Cathay Financial Holdings stated that the members of the bank alliance that will be formed this time are all financial peers that focus on digital development and are committed to improving transaction workflows. They hope to optimize digital financial services through alliances. It is Taiwan’s first blockchain corporate finance platform to promote the financial inter-industry for data exchange.
The alliance will continue to discuss cooperation with more banks and international airlines on the blockchain, enrich the platform database, give full play to the synergy of cooperation, and create a better supply chain financial ecosystem. The “Global Trade Sharing Blockchain” is also closely planning supply chain-related applications, and will gradually expand applicable scenarios and expand more diverse blockchain commercial applications in the future.
■ Source: BLOCK TEMPO
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