The Central Bank of Hong Kong (HKMA) and the «daughter» of the Chinese firm Ping An Group — FINTECH company OneConnect — introducing the blockchain to enhance the effectiveness of trade Finance. More than 20 local banks, including giants such as HSBC and Standard Chartered, will unite into a single financial blockchain platform.
Ping An have used a similar platform in mainland China that showed the blockchain technology is ideal for trade financing. Banks that Finance transactions, you can use it to gain a new level of information on the value of transactions in a certain area.
Many companies require more money than is necessary for the specific transaction. The old system of trade financing were considered opaque. Now the banks can see the real value of such transactions, and to reduce the time they need to receive information about the company before they are willing to offer her in trade Finance.
The blockchain will allow small companies to quickly and easily transfer your data to large banks and to access the same funding mechanism, which is used by a larger company.
The new system supported by the HKMA, will also significantly reduce the paperwork and spending on security. Accordingly, this will reduce the time it takes to process trade Finance from several weeks to one day, which will reduce the overall costs of international business.
«Hong Kong is situated in the center of the Asian financial markets. The fact that the Central Bank of Hong Kong took the initiative to bring together banks, has many advantages. In the system of the HKMA will participate 21 the Bank», – said Deputy General Director of Ping An Jessica tan.