Alfa-Bank and X5 Retail Group: Distributed Treasury and Cash Management (DTCM)

2019: Start liquidity management blockchain service

On September 12, 2019 the X5 Retail Group company reported that in partnership with Alfa-Bank started the customized Distributed Treasury and Cash Management (DTCM) service which will allow corporate clients of bank to manage payments, credit and deposit products and a pool of liquidity in holding. DTCM allows corporations to pass to service model of interaction with bank (BaaS, Bank-as-a-Service).

In large industry business there are practically no repeating stories, all clients — special, customization is required everywhere. At the same time clients constantly change, optimize processes in themselves. Key difference of DTCM from other offers in the market that we give to the client not the channel for sending orders to bank, and a method independently to define business logic of a product and actually "create bank", convenient to the client, comments the director of the Center of search and development of innovations of Alfa-Bank Denis Dodon

Unlike traditional model of bank service when the client can only transfer to bank of the order, the BaaS model means removal of business logic of banking products and services for a circuit of bank with a possibility of flexible customization of the solution under needs of the client. DTCM represents the application based on the Waves Enterprise blockchain platform of Waves company and integrates in itself a number of disruptive technologies — open banking, open API, technology of the distributed register, smart contracts.

The experience received together with Alfa-Bank and Waves Enterprise defines for us the next milestone of work with banks when we can receive the uniform treasurer application, improve data management, lower costs and operational risks. We are going to develop use of technology of the distributed registers in group for process optimization and also to extend it to other partner interactions, in particular to payment function, collection, optimization of interaction with insurance companies, comments the chief financial executive of X5 Retail Group Svetlana Demyashkevich

Within this service the client gets access to a virtual work place of the treasurer with an opportunity to manage flexibly settings on management of a pool of the companies, limits and positions. Interaction with bank is performed using the strengthened qualified electronic signature and smart contracts. In case of Distributed Treasury and Cash Management Alfa-Bank actually provides infrastructure services, how business of global cloud providers is based.

The case implemented with Alfa-Bank and X5 Retail Group shows that the banking market and large business are ready to implementation of the innovation a solutions blockchain, and this readiness is defined not by just modern trends, but desire to receive real business effect due to optimization of labor costs of employees and decrease in transaction costs. The advantages got from use of blockchain technologies allow the companies to be more competitive and to remain leaders in the segments, comments Igor Kuzmichev, the development director of Waves Enterprise

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