Adoption Of Blockchain In Trade Finance And Its Impact On Financial Decision Making
Abhishek Basumatary, Sujata Joshi · 2022 International Conference on Decision Aid Sciences and Applications (DASA) · 2022
Blockchain has been able to create a significant impact in the fields of banking, investing and cryptocurrency in the last few years. It’s recent deployment in the area of trade finance has also shaped up the area of banking and finance. Blockchain has been able to overcome the drawbacks that were eminent with the traditional methods of trade financing like cost, time and errors involved in it. Big and established companies, especially operating in the trading and shipping industry have been able to deploy blockchain methods in their financial transactions and have observed significant impacts due to it. By incorporating Blockchain, automated financial decision making is also made possible as the technology is able to confirm the authenticity of the transactions on its own. However, a comprehensive study of the technology in the area of trade finance is minimal. Thus, the aim of this paper is to study the adoption of blockchain technologies in trade finance and their impact on financial decision making, while also providing future implications for the same. The approach followed is of a case study approach that would make use of a few major use cases of established organizations in the sectors of trading & investment and technology & IT consulting with respect to the method of blockchain that they adopted. The study would be useful for academicians, the subject matter experts, and the organizations operating in the sectors mentioned as they would be able to take decisions to deploy the technology to their benefit.