Lending solutions leverage on emerging technologies to simplify the lending process and to increase the accessibility of lending services. Lending solution encompasses functions like credit scoring, AI deployment, alternative lending solutions and intuitive mobile solutions for lending. This solution utilizes smart contracts to create a more efficient trade financing ecosystem. Leveraging on blockchain technology, buyers and sellers can create trust and an easily traced transaction trail. Payments and shipments are automatically triggered to transact once the other party fulfills certain criteria. This solution is able to streamline processes and reduce the time taken for transactions to complete, saving time and cost for both buyers and sellers. Find out more at www.ey.com/sg/fintechhub. For enquiries, contact us via email at fintech@sg.ey.com.

1. SME supply chain financing solution on
blockchain distributed ledger technology (DLT)
Case study
Context:
A local SME has been seeking innovative ways
to revolutionize the trade finance industry.
Recommended configuration:
• This blockchain solution is ideal for SMEs
that are facing trade financing challenges in
the area of supply chains.
• The key modules include creating a trusted
transaction system and smart contract for
transfer of value.
• It aims to establish an immutable audit trail
to keep accurate records of trade and
finance interactions, traceable invoice
milestones retrievable for data verification,
and invoice status verification by partner
lenders added as validating nodes to a
distributed ledger network.
• This will ultimately lead to creating trust in
“trustless” supply chain networks.
Client impact:
• Created a new trust system within the trade
finance ecosystem
• Mitigated the risk of fraud or errors
• Improved the corporate social responsibility
(CSR) by improving cash flow and
sustainability for SMEs’ suppliers
• Provided easy tracking of transactions with
the blockchain technology
Contact us
Varun Mittal
EY Global Emerging Markets FinTech
Leader
varun.mittal@sg.ey.com
Supply chain financing challenges faced by SMEs
Double financing due to information
asymmetry
Difficult to validate transactions,
providing an avenue for money
laundering
Trust and communication issues
due to a lack of system integration
Scalability issues since system
integration is mostly centralized
Low visibility as inputs are localized
in companies’ internal databases
Unnecessary and duplicate
procedures
Distributed
ledger technology
Leading-edge tech capabilities
Cryptographically
secured
Smart contracts Hyperledger
fabric
Benefits of proposed solution
Real-time
information
exchange
1
Streamlined
workflows
2
Ensures data
validity
3
Eliminates
errors and
risks
4
Blockchain solution for supply chains
Seller and buyer create their own
trust system by agreeing on the
performance parameters under the
smart contract:
• Eliminates buyer’s concern on
seller performance
• (Eliminates seller’s concern on
buyer repayment risk
1. Supplier creates
“smart contract”
2. Buyer
validates
“smart
contract”
3. V-value placed in
escrow and smart
contract updated
5. Performance completed;
smart contract release V-
value to supplier
4. Shipment
tracked and
delivered to
buyer
Website: www.ey.com/sg/fintechhub
Email: fintech@sg.ey.com
Sahil Gupta
EY ASEAN FinTech Manager
sahil.gupta@sg.ey.com

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