Oct 26, 2020

Bitpanda and Raiffeisen innovate banking with blockchain

Blockchain
Bitpanda
Raiffeisen
Banking
William Girling
2 min
Austrian fintech and digital trading platform Bitpanda has announced a partnership with Raiffeisen to introduce blockchain-interoperability in banking
Austrian fintech and digital trading platform Bitpanda has announced a partnership with Raiffeisen to introduce blockchain-interoperability in banking...

Austrian fintech and digital trading platform Bitpanda has announced a partnership with Raiffeisen to introduce blockchain-interoperability in banking.

Forming part of the ongoing (two and a half years) ‘Pantos’ (PAN) project, itself a joint venture between Bitpanda and the Technical University of Vienna, the company’s aim is to “enable token projects to be independent of a specific blockchain.”

It is hoped that Raiffeisen, which is currently active in 13 European markets and serves over 16.7 million customers, will enable both the development of Pantos and allow a more ‘tech-agnostic’ environment for banking regarding blockchain. 

Unifying the fragmented blockchain

Raiffeisen will trial the technology via its experimental RBI Coin, a next-gen digital cash solution designed to streamline cash flow and liquidity management. Its collaboration with Bitpanda is an attempt to address far-reaching industry challenges relating to blockchain interoperability. 

“We see a lot of competing protocols, not only from the cryptocurrency space but also from tech-companies, banks and governments. The question of how to unite all those protocols still remains unanswered,” commented Paul Klanschek, Co-Founder and CEO of Bitpanda.

“The Pantos project aims to offer a unifying solution for the fragmented blockchain and cryptocurrency space. After a purely research and proof-of-concept-focussed mode, we are now extremely excited to enter a partnership with RBI to bring our technology to their RBI Coin.”

Furthermore, Raiffeisen believes that the success of the Pantos project will represent a significant development in the ongoing debate regarding asset tokenisation in modern finance. Christian Wolf, Head of Strategic Partnerships & Ecosystems, explains:

“The Pantos technology plays an integral role in making the tokenisation of assets a reality within our banking group by bringing in the interoperability aspect thus allowing for even more extensive and flexible use cases for banking customers.”

As the conversation on crypto and blockchain-based currencies continues to be decided on both sides of the Atlantic, the potential for Pantos to solve one of modern banking’s main tech problems makes it an exciting project to monitor.   

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Jun 19, 2021

AI and the future of global trade

AI
Tradeteq
trade
Finance
Michael Boguslavsky, Head of A...
3 min
Boguslavsky explores AI's potential in trade finance; could it overcome traditional barriers and usher in a new era of financial transformation?

Artificial intelligence (AI) is becoming entrenched in our daily lives, but the technology is still surrounded by misconceptions and skepticism. Ask the public and they may jump to dystopian scenarios where robots have taken over the world. 

While this makes for a good sci-fi blockbuster plot, the reality is different and more benign. Those products that Amazon suggested you buy? AI. That TV series you were recommended to watch on Netflix? AI. That self-driving Tesla car you crave to take for a spin? You guessed it: AI.

There is no single industry that is not being re-shaped by technology. Until recently, however, there was one noteworthy exception: global trade. Fortunately, that is slowly changing.

The mechanism that underpins global trade – trade finance – is an industry that remains largely paper-based and reliant on manual processes. This US$18tn a year industry is now being influenced by a new wave of technological innovation, including AI.

Exploring the potential of AI in Trade Finance

AI refers to the use of computer-aided systems to help people make decisions or make decisions for them. It relies on large volumes of data and models to make sense of information and draw intelligence. 

In trade finance, AI is helpful in analysing quantitative data, and the repetitive nature of trade finance means that there is a lot of non-traditional data at our disposal. 

This means that when trade finance providers need to assess the risks of funding a transaction, AI models can be a very efficient tool for data analysis and reveal intelligence and risks relating to small companies.

AI helps the industry move beyond traditional credit scoring processes, which are often outdated and remain reliant on historical accounting entries – a barrier that prevents small companies from accessing trade finance and has resulted in a $1.5tn global shortfall. 

Overcoming the barriers

AI can tackle this shortfall by creating accurate credit scoring models. This can include a company’s payment history, measure the risks of funding a transaction, identify supply chain risks, and benchmark them against their peer group.

Trade finance providers can use this information to communicate effectively with their SME clients, ultimately helping establish better business relationships.

Towards a technological utopia?

The adoption of AI has the potential to do a lot of good in the industry, and the industry is in the early stages of radical transformation.

Advances are driven by fintechs as well as a willingness to change. The industry is working together to create new infrastructure for distributing trade finance assets to other investors in a transparent, standardised format. 

The creation of infrastructure is possible due to improvements in technology and integrated across the trade ecosystem in cooperation with banks, insurers, and other industry participants. 

It’s collaboration at its best: together, the industry is using technology to re-shape global trade as we know it.

This article was contributed by Michael Boguslavsky, Head of AI at Tradeteq

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