International banking giant Standard Chartered announced that it is teaming up with Siemens Financial Services, the financing arm of Siemens, and TradeIX, a digital trade provider to create blockchain-based guarantees for trade finance.
According to Standard Chartered, this is an ‘industry-first client pilot’, will remove need for paperwork and the entire process (right from initial bank guarantee to claim handling) will be digitized.
The pilot started in March 2018 and will be completed within this year. Talking about this, Motasim Iqbal, Head, Transaction Banking UAE, Standard Chartered, said, “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.”
Paperwork is not fun for either the bank or the customers. For Siemens, this will mean, the ability to digitize the process entirely for customers with large transaction volume which would include, issuance, claims, amendments, among others.
Explaining further, Michael Bueker, Chief Financial Officer, Siemens said, “While digitalisation is revolutionising whole industries, incorporating digital trade finance solution into our daily operations is an important step. Especially at Siemens, as a digitalisation pioneer, this move is part of our strategic mission of going digital in all arenas. 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 game-changing transformation which will help our customers go digital in their guarantee and claim processes and achieve higher efficiency.”
The premise of this will include auto execution of smart contracts, by making use of the Corda distributed ledger and Trade IX’s application layer.
Rob Barnes, TradeIX said, “We believe that global trade is at the cusp of multi-level digital transformation which will revolutionise 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.”
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