The global banking giant, Standard Chartered has executed its strategic tie-ups with Siemens Financial Services and a digital trade provider TradeIX to introduce industry first client pilot to build an end-to-end blockchain based smart guarantees proposition on trade finance domain.
As per the official source from the bank, the entire transition from the traditional paper-intensive bank to fully digitizes the process with the help of the first blockchain client pilot streamlines bank guarantee to the claim handling.
UAE based Standard Chartered Bank’s head, Motasim Iqbal said in his statement, “This is an industry-defining solution which we believe will transform the way guarantees are issued and processed in the UAE. Siemens Financial Services has been a key partner for us to build and develop this pilot on the distributed ledger and we believe that this technology can further be harnessed by the Dubai Smart City initiative.”
With the value-added blockchain technology in place, the bank will streamline and simplify all those time-consuming processes involved in executing a letter of credit involving numerous parties, credential details of above 100 pages documents by digitizing the entire ecosystem. Technically, the entire process will permit Siemens to digitize its guarantee process for all those customers having a large transaction volume ranging from amendments and claims, spanning issuance, eliminating the multiple touch-points and all those complexities associated with the traditional practices like paper-intensive process.
An excerpt from the Chief Financial Officer, Michael Bueker, Siemens LLC, “While digitalization is revolutionizing whole industries, incorporating digital trade finance solution into our daily operations is an important step. Especially at Siemens, as a digitalization pioneer, this move is part of our strategic mission of going digital in all areas. This will streamline our processes and make our trade finance operations smoother, faster and more efficient. We are delighted to partner with Standard Chartered in leading such a game-changing transformation which will help our customers go digital in their guarantee and claim processes and achieve higher efficiency.”
The pilot project started in March this year and is expected to complete by year-end. The basis of the project to automate smart contracts by leveraging the Corda Distributed Ledger and application introduced by TradIX.
The Chief Executive Officer of TradeIX, Rob Barnes commented in his statement that, “We believe that global trade is on the cusp of multi-level digital transformation which will revolutionize the entire business and operating model. As the platform provider, we are excited to be involved with Standard Chartered and Siemens Financial Services to help script this journey and bring the power of the distributed ledger to solve the challenges facing today’s trade ecosystem.”
Besides this, the global head of Standard Chartered on Trade Products domain, Samuel Mathew said his statement that, “The future of trade is going to be all about data. To this end, we are excited to be the first in the industry to co-create this solution with Siemens Financial Services and explore innovative ways on how we can digitize trade and leverage real-time data to deliver efficiency gains and transform the way trade finance is conducted. Technology is core to Standard Chartered’s strategy and we remain fully committed to delivering the next generation of best-in-class trade products to facilitate trade flows for our clients across Asia, Africa, and the Middle East.”
Fintech has accelerated its pace with the new age technology – blockchain that has revolutionized the entire traditional models by adding values to all those stakeholders involved in the entire process!!