YES BANK adopts multi-nodal Blockchain Solution

YES BANK has announced that they have implemented a multi-nodal Blockchain transaction to fully digitize vendor financing for Bajaj Electricals. The implementation has been done on a blockchain-based smart contract written by fintech start-up Cateina Technologies. YES BANK will also leverage IBM Watson Conversation, a cloud-based cognitive service, to enhance the digital experience of partners, corporate clients and developers collaborating with them on the integrated Blockchain - API Banking platform.

Capitalizing on the efficiency and security features of Blockchain, YES BANK has used the Hyperledger Fabric supported by IBM to design a vendor financing solution which allows Bajaj Electricals (anchor client) to digitize the process for discounting and disbursal of funds to its vendors by integrating seamlessly with YES BANK’s systems. The solution will also facilitate an automated debit from Bajaj Electricals’ account by YES BANK. The business logic and rules are captured in a smart contract (Chain Code) developed by Cateina Technologies.

Rana Kapoor, MD&CEO, YES BANK, said, “Since its inception, YES BANK has used technology and innovation as mission-critical pillars, to offer a superior banking experience to its corporate and retail customers. Our Blockchain implementation is a continuation of this philosophy to offer revolutionary banking technology to our clients. 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 utilizing 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.”

Vanitha Narayanan, Managing Director, IBM India, said, “IBM is pleased to work with YES BANK as a valued client in the banking industry. With decades of industry leadership, we believe that cognitive systems that understand, reason and learn, in combination with blockchain networks and delivered on Cloud can transform operations, compliance and engagement, delivering truly individualised and secure client experiences. YES Bank has been an early adopter of technology to transform employee and client experiences and we look forward to a continued partnership with them.’’

Shekhar Bajaj, CMD, Bajaj Electricals, said, “The BlockChain solution by YES BANK is a significant step towards 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.”  

YES BANK will also use IBM Watson APIs on IBM Bluemix to drive a pioneering engagement program that will enrich the digital experience of the bank’s partners, developers as well as corporate clients. The program is a conversational agent service of IBM Bluemix cloud which uses Watson APIs (Natural Language Classifier & Conversation Agent) to create a natural language interaction with the partners and external developers, when providing support on queries related to  YES BANK banking APIs, the Blockchain APIs, how to subscribe, etc. The aim of the system is to help YES Bank’s partners and developers onboard and integrate their system quickly and simply whilst keeping waiting times to a bare minimum. With the conversation agent being able to find answers from the various backend sources in just a split second, the staff will be freed up to handle more complex problems and partners can benefit from a much simpler and faster process.

YES BANK has put in place a detailed roadmap on commercializing Blockchain-based Banking solutions in India and is exploring use-cases for implementation towards “Letter of Credit” and Documentary Collections, Foreign Remittances and Partnering with Correspondent Banks for Trade Finance, among others.