OneConnect to build supply chain finance ecosystem

Friday 5 July 2019 14:08 CET | News

Singapore-based fintech OneConnect has announced building a supply chain finance plaform with blockchain and cloud infrastructure to boost trade finance for SMEs.

OneConnect hopes to break information barriers and supply the government, financial institutions and foreign trade partners with a database of credible background information and credit histories of SMEs – with a focus on the automotive, agricultural and healthcare sectors. The result should be qualified firms finding it simpler to obtain trade financing.

By including the risk of a single enterprise into a risk-base spread across multiple firms which is then spread across all the links in a supply chain, there is a minimising of the overall risk – assisted by access to a broad portfolio information. When this happens, a financial reviewer has access to, and is able to evaluate, the performance and credibility of each business applying for trade finance from multiple viewpoints. To deliver this requires leveraging cutting-edge technologies. These include blockchain, artificial intelligence, and cloud computing. 

OneConnect, led by the Hong Kong Monetary Authority, helped build in 2018 a blockchain trade financing platform supported by regulators. Serving as an ‘air corridor’ for financial trade, the platform connects international trade hubs in the Guangdong-Hong Kong-Macao Greater Bay Area and facilitates the flow of capital across the Asia Pacific region and the wider world.

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Keywords: OneConnect, supply chain finance, supply chain finance ecosystem, SME, trade finance, Singapore, Asia, APAC, cloud-based platform
Countries: World

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