In the wake of the coronavirus pandemic, Abu Dhabi Islamic Bank (ADIB), a leading financial institution becomes the first Islamic bank to execute and carry forth the trade finance distribution transactions using the Blockchain technology, which in simpler terms is a decentralized, distributed ledger to record transactions- the transactions being recorded in millions of computers using digital signatures that make it unsusceptible to attacks.
The institute’s digital footprint expanded with its partnership with TradeAssets, an auction platform for trade finance distribution which acts a mediator between the seller banks that list the assets they want to trade and the buyer banks that place a bid on these assets. ADBI which is looking to expand in the digital ecosystem has also provided Direct eFX, a platform that facilitates international transfers and payments.
The emergence of the lock technology, of which ADIB has set to make the best use of, helps it provide end-to-end trade financing through digital channels with increased efficiency, productivity and accessibility globally. There are several features like dashboards which are customizable, forecasting of cash flows, online trade distribution and financing being accessible across all devices that adds to the ease with which the bank can operate digitally. This has been a success with over a year of collaboration with TradeAssets. There is also a plan that by the quarter of 2020, Abu Dhabi Global Market will begin to allow crypto asset trading.
The embracing of blockchain technologies, businesses that step into a digital space and exploration of crypto asset trading are several steps being taken to attract foreign investments into the banking sector.
