25 February 2017
Visit dh.com

Yes Bank uses blockchain to help client with vendor financing

04 January 2017  |  9286 views  |  1 India, Mumbai

India's Yes Bank has enlisted the help of IBM for a blockchain project that digitises vendor financing for client Bajaj Electricals.

The bank says that it has used IBM's Hybrid Cloud technology to build a vendor financing system which allows consumer electrical equipment manufacturing company Bajaj Electricals to digitise the process for discounting and disbursal of funds to its vendors by integrating seamlessly with Yes’s systems.

The business logic and rules are captured in a blockchain-based smart contract written by fintech startup Cateina Technologies.

Yes Bank says that this means that the entire process for bill discounting is cut from four days to almost real-time. In addition, the system ensures transparency for all parties through the shared public ledger, while the entire transaction history of a vendor is recorded and immutable.

Rana Kapoor, MD and CEO, Yes Bank, says: "We are glad that Bajaj Electricals is undertaking this technological leap and working with us to solve the current challenges in Vendor Financing solutions by effectively utilising blockchain capabilities.

"I strongly believe that we are only at the tip of the iceberg, and envision that Blockchain coupled with IBM’s Cognitive solution on Cloud platform will make a significant impact in the global Transaction Banking space by ensuring that the Financial Supply Chain is more robust, secure, seamlessly connected and provides a great customer experience."

Meanwhile, the bank is also tapping IBM's Watson Conversation service for an engagement programme for partners and external developers. The conversational agent service of IBM Bluemix cloud uses Watson APIs to create a natural language interaction for providing support on queries related to Yes Bank APIs.

Comments: (1)

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India | 11 January, 2017, 09:53

Good start by YES Bank. Leveraging technology to solve business problems for its customers and ease finance to enterprise and it's suppliers. Hope its repeatable to other corporate customers by the bank.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Watson data scientist talks up 'augmented intelligence' for financial services

Watson data scientist talks up 'augmented intelligence' for financial services

08 December 2016  |  19872 views  |  0 comments | 31 tweets | 20 linkedin
Thailand's KBank and IBM team on blockchain project

Thailand's KBank and IBM team on blockchain project

11 November 2016  |  6340 views  |  0 comments | 11 tweets | 10 linkedin
SBI Securities and IBM test blockchain for bond trading system

SBI Securities and IBM test blockchain for bond trading system

21 October 2016  |  7718 views  |  0 comments | 9 tweets | 5 linkedin
Yes Bank brings iris scanning tech to POS terminals

Yes Bank brings iris scanning tech to POS terminals

17 October 2016  |  7287 views  |  0 comments | 14 tweets | 14 linkedin
Yes Bank partners T-Hub to set up 'fintech centre of excellence'

Yes Bank partners T-Hub to set up 'fintech centre of excellence'

07 April 2016  |  5785 views  |  0 comments | 3 tweets

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit dh.com Visit contisgroup.com

Who is commenting?

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
12649 views comments | 52 tweets | 72 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8566 views comments | 40 tweets | 34 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
6824 views comments | 7 tweets | 4 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6809 views comments | 18 tweets | 13 linkedin
hands typing furiouslyBlockchain Technology
6186 views 1 | 15 tweets | 7 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job