Yes Bank has announced that it has built a blockchain-based vendor financing solution for one of its clients using technology from the open-source project, Hyperledger.
Built for consumer electrical equipment manufacturer Bajaj Electricals, with help from startup Cateina Technologies, the permissioned blockchain system digitizes how Bajaj Electricals is able to transact with its clients.
According to a press release, the solution allows Mumbai-based Bajaj to automatically debit customer accounts so that these companies can then purchase its own products.
In a statement, Yes Bank expanded on the benefits of this design, which included increased transparency, end-to-end auditing and the immutability of the blockchain that it would be using to secure files.
“The entire process cycle for bill discounting reduces from four days (owing to manual intervention and transit) to almost real-time,” the company said in a release.
In statements, Shekhar Bajaj, chairman and managing director of Bajaj Electricals, lauded the integration as one that takes a “significant step” toward what he termed a “digitally integrated solution for supply chain financing”.
“This solution enables us to do timely processing of the vendor payment through vendor financing from the bank without physical documents and manual intervention. It also enables us and our vendor to track the status of the transactions on real time basis,” he said.
As noted by Business Standard, the announcement coincided with an increase in value for Yes Bank in public markets trading.