To keep up with the financial services’ dynamic landscape, Small Industries Development Bank of India (SIDBI) embarked on a journey to pioneer a block-chain based platform for the Indian MSME sector.
The growing issue of duplicate pledging of collaterals among MSMEs has led to financial losses and eroded trust across the industry. To tackle this concern, SIDBI joined forces with Infosys to mitigate vulnerabilities and minimize credit risks in the process of collateral pledging. Together, they built a blockchain-based platform to establish a single source of truth for collateral information among lenders and borrowers, providing a comprehensive view to lenders.
Combining blockchain’s tamper-proof capabilities and automated processes with a tokenized approach culminated in a platform with enhanced transparency, reduced operational costs and streamlined loan management, while achieving instantaneous data exchange.
SIDBI’s partnership with Infosys created a pioneering solution that redefined institutional lending, increasing transparency and eliminating the chances of duplication.
