Ping An Insurance Group announced on Wednesday the launch of its blockchain-based international trade finance platform, eTradeConnect, in Hong Kong. According to Ping An, the new platform is initiated by seven founding banks in Hong Kong and facilitated by the Hong Kong Monetary Authority (HKMA). OneConnect, a fintech subsidiary of Ping An, was appointed by the founding banks through Hong Kong Trade Finance Platform Company Limited as the technological provider to help design, develop and deploy the platform.
Ping An reported that the Hong Kong Monetary Authority announced the official launch of eTradeConnect, which will initially connect 12 joining banks with some of their trade finance pilot clients to share trade information with the use of blockchain technology. Founding banks of the platform include The Australia and New Zealand Banking Group Limited (ANZ), Bank of China (Hong Kong) Limited, The Bank of East Asia, Limited, DBS Bank (Hong Kong) Limited, Hang Seng Bank Limited, The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank (Hong Kong) Limited.
Speaking about OneConnect’s participation in launching eTradeConnect, Ping An Group Deputy CEO, COO, and CIO, Jessica Tan, stated:
“OneConnect is proud to have helped deliver Hong Kong’s first blockchain-powered trade finance platform. This is also a first for the Asia Pacific region, which is a credit to the HKMA and banking industry.”
As previously reported, Ping An’s OneConnect is said to be the biggest Fintech service cloud platform in China and providing Fintech services for 483 banks, 42 insurers, and nearly 2500 non-bank financial institutions.
Ping An went on to add that leveraging blockchain’s distributed ledger technology, financial institutions will potentially be able to access real-time, secure and comprehensive trade information to conduct the banks’ risk assessment on loans.
“The blockchain technology will also enhance efficiency and potentially reduce financial costs for companies by digitalizing trade documents in trade loan applications.”