Comprehensive software reviews to make better IT decisions
Three Global Banks Sign Up for Finastra鈥檚 Blockchain-Based LenderComm
Finastra鈥檚 Fusion LenderComm platform has integrated with Corda Enterprise R3鈥檚 commercial version of its open source blockchain platform. The service has officially been launched, moving the service from pilot to production.
BNP Paribas, Natixis, and Societe Generale partnered with Finastra to pilot an open, blockchain-based service that is 鈥渆nabling banks to expose real-time credit agreement, accrual balances and position information data to lenders, directly from agent bank loan servicing platforms, such as Finastra鈥檚 Fusion Loan IQ.鈥漀atWest bank will soon be joining the early adopters of this platform as well.
Source: , Accessed July 4, 2019
Our Take
The successful launch of bitcoin has popularized the open ledger accounting and simple contract concepts. Since then, the marketplace has been exploring ways to integrate these concepts to solve traditional business challenges.
The relatively simple nature of a non-trust-based, exchange-of-value transaction employed by bitcoin that features near-real-time settlement and distribution of that transaction has held a tempting allure for many financial services organizations who are heavily transaction focused.
Unlike bitcoin, most financial transactions have very complex transaction details, often with delayed settlement, that makes the process much more complex when compared to bitcoin. As a result, complex workflows have developed to address the needs of financial transactions that are not as well suited to the blockchain/open ledger concept.
With this announcement, Finastra鈥檚 Fusion LenderComm and its early adopters appear to have overcome the complexity of settlement using a blockchain-based application. This has significant implications for other financial transactions as it provides a proof of concept and real-life working example of how blockchain can be applied to more complex financial transactions.
Want to Know More?
The Obvious Case: Blockchain in Financial Services
Demystify Blockchain: How Can It Bring Value to Your Organization?