BNI is Ready to Use Blockchain for Business Development
Effective by the end of this year, for trade finance and remittance
Marsya Nabila - 17 May 2018
BNI is to implement blockchain technology to boost the corporate's performance at the end of this year. Post-signing the agreement with PT Adamobile Solutions Network, trade finance and remittance will be BNI's first business unit to use the technology.
The agreement was signed by Rico Rizal Budidarmo, BNI's International and Treasury Director and Adam Suherman, CEO of Adamobile Solutions Networks, last week (5/11). In the agreement, both parties will review its business related to the blockchain implementation for the next three to six months.
"Blockchain implementation for trade finance transaction will ease the document access and validation that can be done in real time using integrated system among its members," Budidarmo explained, as quoted from Bisnis.
In terms of remittance transaction, blockchain is very useful and safe for data trading in real time because it has been encrypted to all members. This technology is expected to boost transaction and revenue significantly in trade finance business and remittance.
Adam Suherman, CEO of Adamobile Solution Networks, said the blockchain technology that is going to be implemented by BNI can make the remittance and trade finance business more efficient in terms of time and cost.
"The cost for efficiency will be reviewed with BNI, but seeing overseas banking that already implemented blockchain, the cost efficiency can reach 20%-40%," he mentioned.
Henry Panjaitan, BNI's International Business General Manager added, after the business review done in three months, six BNI branches overseas will be using the latest technology. The performance is supposed to be more efficient in cost or time.
Based on performance, BNI's trade finance business volume last year has reached $40 billion or 25% up from last year. Meanwhile, the remittance has reached $74 billion or 10% growth.
As per April 2018, BNI's trade finance business volume has reached $15 billion or 23% growth. The destination countries that have the biggest contribution in trade finance are Singapore, China, and Japan. Corporates are targeting realization in trade finance transaction volume to reach $45 billion.
– Original article is in Indonesian, translated by Kristin Siagian