(NYSE: IBM) just announced it intends to use blockchain technology to revolutionize supply chain finance across India, in cooperation with Mumbai-based conglomerate, The Mahindra Group.
A new cloud-based application is designed to transform supplier-to-manufacturer trade finance transactions through a permissioned distributed ledger.
The developers explain that the blockchain-based supply chain finance solution will enable all parties involved in the transaction to act on the same shared ledger, with each party updating only their part of the process, ensuring efficiency, consistency, trust and transparency, while safeguarding sensitive information.
“The Mahindra Group is pioneering the use of blockchain to disrupt its traditional businesses and drive future growth. We are actively looking at other applications across the Group in financial services, auto, mobility and agritech,” said Anish Shah, Group President (Strategy), Mahindra Group. “This proof of concept represents a significant step forward in making blockchain, still a new technology, a more compelling and efficient supply chain solution for Mahindra Finance’s small and mid-sized enterprises loans business. Working with IBM, we will work to build, test, scale and refine this solution over time.”
“Blockchain is poised to revolutionize business like the Internet did, and IBM is at the forefront of the revolution. We offer a comprehensive enterprise-class blockchain solution that is secure, scalable and reliable. The work with Mahindra has the potential to fundamentally transform the way businesses interact with one another and their customers and suppliers, and we’re confident that this engagement can be replicated not just in the finance industry but across other sectors as well,” said Lula Mohanty, Managing Partner of IBM Global Business Services, IBM ISA.