New Delhi-based digital transformation services firm Tech Mahindra Ltd. and financial technology services company Adjoint Inc. announced a joint project Monday to build a distributed ledger blockchain financial and insurance management solution for enterprise users.

The two companies claim the new blockchain network is one of the first that will secure enterprise financial management and insurance service across locations in order to create a seamless and reliable customer experience. It will do so by reducing paperwork through automating transactions, which will help reduce human introduced error and increase trust that entries have not been tampered with.

“Tech Mahindra will partner with Adjoint to provide customized treasury and insurance solutions to Asia, Europe and the US markets,” said Rajesh Dhuddu, global head of blockchain at Tech Mahindra. “The solutions will help the clients improve profitability, efficiency and will help protect sensitive information in general data protection regulation-compliant fashion.”

Regulatory compliance for Mahindra’s blockchain would include privacy regulations such as the General Data Protection and Regulation law in the European Union as well as laws in the U.S. and other countries that enterprise users might encounter.

By using the secure transaction history recorded in the blockchain, third party auditors can be certain that the information provided is truthful and cryptographic security can keep private financial information private. Mahindra predicts that its solution will help save customers up to $4 million for every $1 billion of financial risk management and banking relationships.

The software is built upon an open-source distributed ledger platform designed to improve efficiency, security and compliance for financial processes. Developed and launched by Adjoint in 2017, Uplink provides a distributed ledger designed to provide blockchain capabilities for the financial sector including high security, cryptographic privacy, transaction automation and smart contracts — an important element of many blockchain platforms that allow developers to write programmable self-executing contracts.

”Our collaboration with Tech Mahindra will help us bring digital innovation to the corporate treasury and insurance space. Our clients will be able to better manage settlements, loans and investments that may currently be restricted by corporate divisions, countries, or bank accounts, and thus reduce their working capital needs,” said Somil Goyal, chief operating officer at Adjoint. “Our solutions provide secure, end to end automation of business processes which reduces costs and eliminates the cumbersome process of data entry and reconciliations, which is common today in banks and corporations.”

Blockchain use in the financial technology sector is not uncommon because platforms built on distributed ledgers can provide a great deal of security alongside trustworthy automation. Other examples of blockchain platforms include an insurance management blockchain from IBM Corp. and the Australia and New Zealand Banking Group, an automotive insurance blockchain from State Farm Mutual Automobile Insurance Co. and an insurance blockchain for marine shipping with Ernst & Young Global Ltd. and Guardtime AS.

Financial technology and insurance using blockchain was itself a $231 million global market, and it’s expected to exceed $6.7 billion by 2023, according to Market Research Future.

This partnership follows Tech Mahindra vision to provide digital transformation services and adds to the company’s overall portfolio of solutions. A spokesperson for the company said that blockchain is an example of a transformative technology that will continue to be a big part of financial technology in the future.

For more information on Adjoint’s Uplink blockchain, the company published a detailed blog post about the subject.

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