Singapore’s CIMB Bank expects to generate transaction flows of around $100 million each year as the bank launched Singapore’s first blockchain trade finance platform.

By collaborating with Singapore-based blockchain firm iTrust, a joint venture between Ascent Solution and 1Citadel, CIMB Bank completed its first trade finance transaction using IoT cargo sensors and blockchain. The transaction involved financing of dairy products into China.

With iTrust’s technology, the cargoes in transit can be tracked in real-time with the help of IoT sensors. The documents related to the cargo in transit are placed on a distributed ledger. The technology helps reduce risk to a great extent which was earlier a part of the transaction.

Mr. Mak Lye Mun, CEO of CIMB Bank Singapore told the media, “Given the rapid technology shifts in the market today, we will continue to focus on digitalisation and customer experience to transform the way we finance our corporate customers, thus adding value to our services. “

According to him, the blockchain trade finance platform will provide CIMB Bank Singapore with an opportunity to support its customers more efficiently and cost-effectively. The platform mitigates fraud risk, and alerts the bank of any unauthorised movement of the cargo in transit.

He further revealed that the bank is working closely with iTrust to carry forward its technology to other markets it operates in.

Earlier this month, CIMB Bank in the Philippines partnered with Singapore-based fintech player CredoLab to facilitate instant credit scoring of loan applicants. CIMB Bank will use CredoLab’s online application called CredoApp, which provides an AI-based credit scoring facilities for a more efficient and accurate assessment of applicants.

According to the bank, a customer can apply for personal loans and get it approved within a time span of just 10 minutes.