- Initiative will enable triggering financing or payment instructions in real-time through APIs
- The solution combines IoT and cloud capabilities to track goods in real-time, reducing operational risks
- The solution uses Huawei’s OceanConnect, an open platform built on IoT, cloud computing, and big data technologies
Standard Chartered will work with Chinese networking giant Huawei Technologies to develop IoT solutions to address interbank corporate communication for payments and financing, according to a press release from October 10th. The IoT platform will automatically trigger payments to corporations and provide near-instant data on the movement of goods.
Corporate communication for the 21st century
The announcement said Internet of Things (IoT) powered solutions will modernize corporate communication with banks. The statement said corporations will no longer have to start payment instructions using paper or email based communication since banks and other corporate customers will have systems that will “speak” to each other in real-time and trigger payments via Application Programming Interfaces (APIs).
The solution, the bank added, will combine IoT and Cloud computing to enable them to reduce operational risks and provides reliable data to be used when making financing decisions. The bank is already running a pilot trial of Huwaei’s OceanConnect, a cloud-based IoT ecosystem that amasses data on the shipment of merchandise that’s used in making financing decisions. Commenting on the partnership, Michael Gorriz, group CIO of Standard Chartered stated:
“We found in Huawei a strong partner who shares our passion to transform the way we would like to support our clients and make banking seamless and effortless for them […] we look forward to piloting the solution with clients and working with Huawei and other technology partners to explore new use cases.”
IoT infrastructure for the world of tomorrow
Huawei’s vice president of marketing and Product Solutions explained that their organization is working to create a digitally connected intelligent world where more industries will adopt IoT to deal with different challenges that only technology can address. He further stated regarding their partnership:
“We partner with Standard Chartered for their strong determination and great vision from the top echelon of the company to support their clients when it comes to digital transformation.”
Using blockchain applications in making financing decisions by banks seems to gain ground. Ripple and SBI Holdings recently unveiled a new payment platform called MoneyTap. The product is the brainchild of Japanese financial firm SBI Holdings and blockchain-based payments processor Ripple.
The Commonwealth Bank of Australia is trialing the use case of IoT and blockchain technology to help corporate clients buy and manage assets such as farm machinery efficiently.
Standard Chartered set up a business unit dubbed SC Ventures in Silicon Valley earlier in the year to help catalyze innovation and entrepreneurship, invest in Fintechs and promulgate disruptive ventures. The bank has also opened an eXellerator innovation laboratory in Hong Kong, complementing the eXellerator laboratory in Singapore.