Avanza Innovations is the latest venture of Avanza Group of Companies – a 20 year old technology power house
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Avanza Innovations
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As such, resulting disputes, claims and reversals continued to remain largely manual procedures. The Smart Dubai blockchain payment reconciliation and settlement project thus set out to create a more effective layer to address the limitations of the existing platform. The goals were as follows:
• 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
Under the leadership of His Highness Sheikh Hamdan bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, Avanza Innovations signed an MOU with Smart Dubai Office in 2017 to implement a citywide blockchain based payments platform.
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.
