Reconciliation & Settlement of Govt. Funds on Blockchain
One the most significant challenges that sparked Smart Dubai’s interest in applying blockchain was the lengthy and costly manual reconciliation and settlement process, which took up to 45 days. Under the current platform, the Department of Finance and other participating stakeholders had limited visibility of funds, collections and transactions.
• Enable instant reconciliations and settlement between entities
• Immediate disputes and claims resolution
• Automation of financial procedures for operational efficiency
• Transparency and immutability of financial records
Leveraging InstaChain to reduce the payment & reconciliation sequential process from 45 days to real-time.
Under the leadership of His Highness Sheikh Hamdan bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai signed an MOU with Smart Dubai Office in 2017 to implement a citywide blockchain based payments platform.
iTOO-Avanza’s Reconciliation & Settlement Blockchain Product, InstaChain, was implemented to help reduce the payment and reconciliation sequential process of 45 days, from the day a user makes a payment, to real-time. The new system enabled transactions to be performed accurately and in real time, and economize time and effort. The department’s current procedures rely on staff members physically conducting payments and manually reconciling, as well as settling them and deducting fees, before transferring remaining amounts to relevant authorities, which is a time-consuming process that could take up to 45 days.
As of November 2019, the majority of entities in the Dubai Pay platform have joined the blockchain platform, with onboarding of the remaining entities planned to be completed by 2020. With the implementation of the platform, reconciliation has been cut from a 45-day process to real-time resolutions, along with associated costs. The platform enables entities to see total revenue in real time and saves around 15 days of processing time per case.
Customer satisfaction has also increased, as entities are able to resolve customer payment issues proactively. Issues can be detected in real time and, as a result, entities can provide more effective services or issue transaction refunds. Additionally, distributed financial records have helped the network improve the transparency and trust of the financial data between banks and entities.
Video Walk-through to understand the project dynamics!
Watch the short video presentation of the use case to understand the problem iTOO-Avanza solved for the Government entities, our implementation experience, & the technology under the hood