KBC's Digital Trade Chain application Qorus Banking Innovation Awards 2016 - Winner

The Digital Trade Chain (DTC) is a blockchain solution that facilitates secure international trade, focused on SMEs. Many SMEs depend on import and export to grow their businesses. Most of this international trade is done based on open account ( without any risk migitation or bank involved). The paper based documentary credit as a way of reducing the risks involved in doing business, is not always suitable for SMEs as it is a more complex process. KBC's new Digital Trade Chain application is a digital platform for managing, tracking and protecting domestic and international trade transactions. Using the application simplifies trade finance for SMEs. The DTC links parties, i.e. buyer, seller, and the banks of both trade parties to each other. The application provides follow up for the entire trade process from order to payment, displaying it in an at-a-glance flowchart and guaranteeing payment when all contractual agreements have been met. All trade events are registered by the parties on the blockchain and the final payment by the buyer against receipt of goods (the ultimate goal of each trade) will automatically be processed by the execution of a smart contract. The payment reconciliation will be facilitated, improving the whole process. The platform is fully automated and available 24/7, so the order-to-payment process is much faster than the traditional exchange of documents. It also requires far less back-office administration.