Riding the momentum from their ranking in the Top 50 Technology Provider in the IDC Financial Insights FinTech Top 100 Rankings, Pactera AVP and FinTech Delivery Solutions Leader, Yong Liang, was one of several keynote speakers at the Open FinTech Forum in October. The Open FinTech Forum is an annual gathering for IT decision makers in the financial services sector to become better informed “about the open technologies driving digital transformation, and how to best utilize an open source strategy and implementation.”
Pactera is a digital technology and IT services provider that serves more than 300 financial enterprises both at home and abroad delivering key operational support for core banking systems that manage trillions of financial transactions per year. Mr. Yong Liang presented Pactera’s approach to leveraging distributed hyper ledger technology to solve the business challenges associated with issuing letters of credit among international trade partners and financial institutions.
Letter of Credit Business Challenges
A letter of credit (LC), also known as a documentary credit, is a payment mechanism used in international trade to perform the same economic function as a guarantee, by allocating risk undertaken by contracting parties. An LC is extremely common within international trade and goods delivery, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as underwriting the credit risk of the buyer paying the seller for goods. It can take weeks sometime months to complete one single LC transaction with many parties in the middle involved.
Pactera’s Distributed Hyper Ledger Applications
Pactera’s Application Suite of Distributed Hyper Ledger Technologies contains a tool set of Blockchain API connectors as well as a Blockchain management system to connect most financial institutions back office systems to IBM’s Hyperledger Fabric and Indy Platform. Leveraging Distributed Hyper Ledger Technologies to execute letters of credit not only makes the transaction more secure, but shortens the turnaround time from months to just one week.
If you would like to learn more about how Pactera uses Distributed Hyper Ledger Technologies or to learn more about our services in the BFSI sector, reach out to us via our contact form.