Indian private bank YES BANK announced that it has implemented multi-nodal blockchain solution, by leveraging IBM Hybrid Cloud technology in order to completely digitize vendor financing for Bajaj Electricals, an Indian consumer electrical equipment manufacturing company.

The implementation of Chain Code was carried out on a blockchain-based smart contract in partnership with fintech start-up Cateina Technologies, the release stated. Leveraging IBM Watson Conversation, which is a loud-based cognitive service, YES BANK will enhance the digital experience of partners, corporate clients, and developers who are collaborating with them on the API Banking Platform, the integrated blockchain.

“Since 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,” Rana Kapoor, MD&CEO, YES BANK, said.

The bank has used the Hyperledger Fabric that is supported by IBM to build a vendor financing solution which allows its client Bajaj Electricals to digitize the process for discounting and disbursal of funds to its vendors. The blockchain solution will also facilitate an automated debit from Bajaj Electricals’ account by YES BANK.

“The blockchain solution by YES BANK is a significant step towards the 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 a real-time basis,” Shekhar Bajaj, CMD, Bajaj Electricals, stated.

YES BANK will utilize IBM Watson APIs on IBM Bluemix and the system aims to help partners’ of the bank and developers onboard to integrate their system quickly and simply at the same time, minimizing waiting time. The bank has outlined a roadmap on commercializing blockchain based banking solutions in India and is currently exploring the use cases for implementing towards ‘Letter of Credit’ and Documentary Collections, Foreign Remittances. It is also looking to partner with correspondent banks for trade finance.