VerifyUnion and ASB Bank have developed a new digitized and automated trade process and platform that helps exporters conduct businesses on the blockchain. Data integrity and fraud risk are among the main benefits of this platform.
VerifyUnion is a decentralized identification platform and ASB Bank is a financial institution owned by the Commonwealth Bank of Australia. VerifyUnion works by providing data ownership and protects user privacy securing documents and identities.
ASB Bank operates in New Zealand and provides financial services such as retail, businesses and rural banking, among other things such as funds management or insurance.
The companies were able to create this digitized platform that will offer a ‘single trade window.’ All the documents, such as certificates of origin, government approvals and traceability information can be exchanged using this specific platform.
In order to start exporting, the documentation process takes over 8 days. Physical papers have to be exchanged between the bank and the client. VerifyUnion CEO, AJ Smith, explains that it is necessary to trust that the physical documents haven’t been tampered with.
In order to test the network, Greenlea completed New Zealand’s first blockchain export. Other institutions involved in this pilot involved the Chamber of Commerce, Ministry of Primary Industries, the New Zealand Meat Board and other insurance companies.
The platform was capable of transfer documentation and cash within an hour, compared to two or four days that it could take in the past or using traditional systems.
Jack Bollebregt, Greenlea chief financial officer, said that the platform will be reducing the documentation timeframe for exports in New Zealand. Additionally, he explained that risks related to cybersecurity threats are also tackled.
On the matter, Vollebergt commented:
“We’re exporting to 40 different countries and being able to use the ASB blockchain platform removes the weak spots and ensures the integrity of the data. We also especially like the instant translation capability which will limit any misunderstandings or human error that can come from dealing with businesses based in different countries and time zones.”
ASB Bank general manager of global transaction banking, Greg Beehre, said that they are committed to start implementing blockchain systems and improve trade processes for customers. He then said that New Zealand’s export industry will remain competitive with this new platform and by using blockchain technology.
There are several companies that are starting to implement blockchain systems for exports and imports. The Chinese e-commerce giant, JD.com developed a blockchain system to track meat from the farm until it reaches the customer.
