Raiffeisenbank developed a blockchain platform for automation of calculations for Askona Life Group

On May 31, 2019 Raiffeisenbank announced development of a blockchain platform for automation of settlings with suppliers and buyers especially for Askona Life Group which part the factory of goods for a healthy sleep Askona, several plants performing production of raw materials and component parts, factory of beds and sofas and also 820 brand stores in Russia and the CIS countries is.

We aim to increase operational efficiency of business, including, through process automation of back-office. The task consisted in simplifying and automating settlement in group, having avoided at the same time considerable investments. We did not find the ready-made solutions meeting all our requirements therefore the idea to use blockchain technology was born. We addressed colleagues from Raiffeisenbank for its joint implementation and are very happy with result, comments Evgeny Kirillov, the director of investments of Askona Life Group

Now also other corporate clients of bank can use this service. The solution is especially relevant to groups and holdings for automation of calculations for deliveries, management of financing, to large manufacturing companies for settlings with buyers and suppliers.

Technology of the distributed registers allows to bring service which our bank renders to corporate clients, to qualitatively higher level and to offer products which banks never offered the clients earlier. Actually, the bank created the channel of remote banking of payments of clients — legal entities in mode 24x7,

Usually for the conclusion of the transaction on a chain "buyer-seller-bank" each participant uses own systems with the closed circuit which do not provide free data exchange therefore communication between the parties and all stages of the transaction — from the order of goods before fixing of its receipt — are performed via e-mail. Besides, to create the payment order, the buyer should use a system bank client. Process becomes more difficult if it is more participants of a system, than three.

The ecosystem is a common information space which allows to automate processes, making them easier and is more transparent: time and labor costs for communication is reduced, the human factor is excluded.

Other banks which client is the company automating calculations for deliveries can be connected to a system. For this purpose they need to unroll nodes a blockchain network, or notes which will allow them to exchange documents.

We received a ready-made product which allowed to simplify significantly the procedure of settlement, to reduce labor costs more than by 40% and to reduce risks of wrong postings to zero. Further we are going to develop jointly with specialists of bank an ecosystem, gradually entering into it additional processes, to connect to the platform of our suppliers, partners and other banks with which we interact. It will allow us to increase transparency and controllability of financial flows of group and to concentrate on questions of business, noted Evgeny Kirillov, the director of investments of Askona Life Group

The buyer creates in the information system (for example, 1C) the order for purchase of goods. Via specially developed API interface data with information on the order are included in the distributed register of the buyer, are duplicated on a blockchain network and via the API interface are loaded into information systems of other participants: the seller, agents, collaborators, the servicing bank. The seller in the system sees the order and makes out shipment. This event via API interfaces and a blockchain network is displayed practically at once at the buyer. As soon as he confirms goods receipt in the system, the corresponding records are entered in the distributed register.

Specially drafted smart contract is responsible for correctness of the entered data. It verifies the data coming to the distributed register from the buyer and the supplier and after the buyer confirms goods receipt, creates the payment order, and money from the account of the buyer is automatically transfered to account the seller. Information on transaction is available to both parties.

At solution development high requirements to information security, including use of the means of a kriptograficheskoyzashchita of information and electronic digital signature accepted in bank were considered, added Nikita Shvetsov, the head of directorate of information technologies of Raiffeisenbank

Technologies of the distributed registers are investigated in bank since 2017. In 2018 own R-Chain blockchain platform was developed for automation of calculations and other banking products between clients of bank on which several pilot projects were implemented.