The leading financial banks in Hong Kong, the Hong Kong Monetary Authority have partnered with Deloitte to create a Distributed Ledger Technology (DLT) proof of concept. The technology, focusing on Trade Finance resulted in engineering a proof of concept to help leverage DLT in creating new platform for financial institutions, logistic firms, buyers, and selling companies.
DLT will enhance Hong Kong’s position as a global financial Hub
The proof of concept has demonstrated that application of DLT will enhance Hong Kong as a global financial hub by digitizing financial operations with smart contracts, lowering risks of fraud and duplicate financing. It will also promote transparency and anchor innovativeness in the highly sensitive financial sector. Note that all the impacts on legal, operations, governance, data security and regulation.
While commenting on this development, HKMA director, Li Shu-Pui pointed that they are very pleased to help the industry make huge strides on trade finance. Though some issues including governance, legal, and regulatory need to be addressed, Li highlighted that they would keep working with the banks for realization of the value proposition.
Robert Hooks, the Deloitte China Markets Leader could not hide his satisfaction. He expressed his joy to have worked with the entire Work Group and HKMA in designing DLT (blockchain) that will help in cutting cost and raising transparency.
A new way to build trust and raise productivity in Hong Kong business ecosystem
Paul Sin, A partner with Deloitte China and the lead in FinTech Practice, pointed that approximately 50% of business transactions in Hong Kong do not get financing for lack of trust. He added that by HKMA coming together with top banks to develop the new technology will inject the needed transparency in the entire ecosystem to raise productivity.
The Standard Chartered’s Gautam Jain, who is in charge of Digitization & Clients Access and Transaction Banking, indicated that DLT could be used to help transform the current Trade Finance Solutions while raising efficiency on the operational ecosystem. He added that they would use every effort to ensure that the new technology becomes a reality.
Kroeker Joshua, the Senior Product Manager for Global Trade and Receivables Finance at HSBC pointed that the latest development places Hong Kong at the center of the entire effort to promote digitization, raising efficiency, and lowering cost of doing business.
Deloitte Blockchain is made of a large team of more than 800 experts from 20 nations working with multinationals looking forward to starting applying latest tech-enabled solutions. To date, they have engineered over 30 blockchain related tech-prototypes in areas such as digital banking, digital identity, trade finance, and cross-boarder payments, and insurance sectors.
Your business can also take advantage of the latest technology development to grow and succeed. Contact us to see how you can leverage operations for faster growth and success in the Hong Kong market.