South Africa’s Standard Bank Taps into Contour Letter of Credit Blockchain
South Africa’s Standard Bank is moving into the Contour blockchain trade finance network via Letter of Credit Blockchain.
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Standard Bank South Africa, a blockchain friendly financial institution in South Africa will be moving alongside other banks to utilize blockchain for it’s digital letter of Credit network.
Contour a Singapore based financial technology provider uses the R3 Corda enterprise blockchain for its digital Letter of Credit network.
The blockchain based digital letter of credit network is currently in beta testing mode and there are plans to expand the offering to other Letters of Credit and guarantees.
Quick Facts: A digital letter of credit or credit letter is a digital version of a letter that is been issued by the bank to a seller to guarantee that the buyer will make payments and for the exact amount. In a situation whereby the payment wasn’t completely made by the buyer, the bank will complete this payment to the seller.
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The projects claims that through digitization the processing time for payments will be improved by up to 90%.
“With businesses across the world having to adapt to changing work processes, it’s important that international trade is not left behind,” said Kevin Holmes, Head Trade Product Management at Standard Bank.
“Joining Contour has allowed us to expand our offering in collaboration with International Financial Institutions to corporates across the region harnessing Contour’s technology to provide our clients with an enhanced user experience.”
The South Africa’s blockchain friendly bank is also a member of the Marco Polo trade finance network, along with at least five other members of Contour. Standard Bank has a more diversified blockchain reach amongst her peers in the country.
Contour was founded by seven banks, Bangkok Bank, BNP Paribas, CTBC Holding, HSBC, ING, SEB, and Standard Chartered. Standard Bank is the fifth additional bank to join since incorporation, following Citi, Vietnam’s HD Bank, DBS Bank and SMBC.