Prudential Singapore and StarHub have partnered to launch a blockchain-based digital trade platform for Small and Medium-sized Enterprises (SMEs).
Dubbed “Fasttrack Trade” (FTT), the platform would enable SMEs to seek business partners and distributors, buy and sell goods, track shipments, receive and make payments, access financing and buy insurance – all through a single platform. It also provides alternative financing options to SMEs through Funding Societies, a peer-to-peer lender.
Under the terms of the partnership, StarHub will offer its enterprise customers access to FTT’s services while Prudential will offer insurance to help them mitigate business risks. The platform is being developed by fintech startup Cites Gestion with funding from Prudential.
“We are creating a digital ecosystem based on cross-industry collaboration that will transform commerce and drive the growth of enterprises. Convenient and affordable access to non-traditional sources of funding and to protection will help smaller businesses fulfil their growth ambitions and manage risk. For Prudential, FTT will help drive engagement with a new group of enterprise customers,” said Stephanie Simonnet, Chief Partnerships Distribution Officer at Prudential Singapore.
Based on distributed ledger technology (DLT), FTT helps in establishing trust among SMEs through the sharing of a common audit trail between counterparties on the platform. Every transaction on FTT is recorded and traceable, which makes it faster, cheaper, and safer for SMEs to conduct trade transactions and access financing.
According to the official release, FTT is expected to launch commercially in the first quarter of 2018. The project partners plan to open up the platform beyond Singapore.
“We want to test the platform in Singapore and then bring it to emerging markets across Southeast Asia to enhance financial inclusion,” Agnes Hugot, CEO and Co-founder of Cites Gestion said. “A digital platform such as FTT could help boost the trade corridors in Southeast Asia, strengthen business communities and bring about significant economic benefits to everyone."
