With Blockchain gaining traction and more FinTech solutions building platforms to integrate into Blockchain, there are going to be some processes within the #finance value-chain that could benefit the most across multiple domains:
• Cross-Border Transactions - Blockchain-powered payment services charge less than one percent in fees on cross-border payments. They take only a few hours to process and account for billions of dollars in international transfers completed.
• Late Payments - International buyers use their suppliers as a source of financing by paying invoices late blaming it on in-efficient clearing etc. However, a new auto-settlement product powered by blockchain will allow the supplier to specify the settlement conditions upon which the automatic payment would be triggered by the buyer, and ensure there were no long delays in any invoice payments, and being paid on time.
• Intercompany transactions, and reconciliation – When Blockchain is adopted by all parties in an eco-system this brings all parties into a single platform to allow sharing of real-time information and automated intercompany reconciliation, blockchain can enhance corporate treasury functions.
• Record Sharing and Storage - Banks hold massive stores of records because they have so many customers. Those records are very valuable to bad actors. Blockchain helps to store records in a decentralized fashion, providing top-flight security and easy accessibility. This system also eliminates the risk of complete record loss.
• Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Investigations would become far quicker and cheaper with blockchain. Because data logged on the blockchain is distributed across hundreds or even thousands of nodes, altering the entire decentralized record is effectively impossible.
• Trade Finance - Blockchain technology could help decrease recordkeeping costs and eliminate some intermediaries while simultaneously weaning trade financiers off of paper-based systems that cost time and money.
• Increasing Transparency - The blockchain allows unparalleled data aggregation, fund tracking, and transparency. This will expose and reduce risky practices while rewarding responsible bankers.
More details on how SAP can address similar scenarios within S4 HANA and SAP BTP will be covered as part of the SAP + Blockchain scenario series, check out zynergyx Technologies for updates.
For more SAP Blockchain use cases & solutions, visit the free dedicated Blockchain SAP channel on:
Source: https://lnkd.in/gia3VwG4 & zynergyx.
