One of the promises of ‘immutable’ blockchain is the removal of human-error from governance, the agency which was single-handedly responsible for the biggest of historical blunders in the past century or so. In theory, blockchain is a digital entry of records in ‘blocks’, with each of the next-block attached to the previous one to form an unending series of chain. Storing the data on a blockchain not only provides a single view of the truth but also prevents data from ever-being falsified. This, in particular, is of great interest to cold chain experts and stakeholders.
Modern-day supply chains have resulted in the creation of a globalized world of inter-connected commerce, far beyond anything that the previous generations could have imagined. Indeed the very marvels of global supply chain and logistics industry are providing impetus to growth through trade and commerce, which in itself is fuelled further by consumption and knack for market production. But with all this comes unprecedented complexity, featuring cooperation between multiple parties for transportation of goods around the globe. Supply Chain and Logistics industry faces numerous challenges of maintaining authenticity, visibility into the origin, and asset handling as they cross organizational boundaries.
Traversing multiple geographical (international) locations and spanning over hundreds of stages, contemporary supply chains extending over months depending upon product often include a multitude of invoices and payments with several individuals and entities involved. Blockchains technology with all of its use cases has the potential to transform today’s complex supply chain and logistics industry.
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The blockchain is a fairly new technology and that too of a disruptive nature. Companies around the world are curiously probing the conceptual implementation of blockchain technology’s use cases for enhancing business capacity. The technology is theoretically capable at least of extending any company’s digital transformation beyond its four walls, and into the processes, it shares with suppliers, customers and partners.
In the last few years, we have witnessed a few biggest frauds in the banking and financial sector worldwide. Either with $639 billion in assets and $619 billion in debt, Lehman’s bankruptcy filing or the $1.8 billion Indian bank loan fraud in recent years was the big eye-opener. Federal Services Royal Commission (Australia) found that the Home Loans were being given based on fraudulent documents and recently, CNBC has reported* Mortgage fraud risk jumped more than 12 per cent year over year which measures six fraud indicators: identity, income, occupancy, property, transaction and undisclosed real estate debt.
Context and Business Case
Identity in the financial services is usually defined by government-issued identity (drivers’ license, passport, social security card, etc.), and Know Your Customer (KYC) processes provide the backbone to financial institutions’ anti-money laundering efforts and help to detect and prevent criminal behaviours. However Despite the importance, KYC at many financial institutions is inefficient and tedious, duplication of effort and risk of error, which is costly and could negatively impact customer experience and ultimately hamper financial institutions brand value.