Lloyds Bank is partnering with blockchain platform Komgo to streamline its commercial banking division.
Blockchain to streamline international trade process
United Kingdom financial news outlet FStech reported that Lloyds Bank, one of the “Big Four” clearing banks in the U.K., said that it would use Komgo’s platform “to enable quicker international commodity trade finance,” adding:
“Komgo’s DLT platform digitises and streamlines the commodity trade finance process, enabling businesses to quickly and automatically exchange data and associated documents across a wide range of solutions – from letters of credit and KYC management to receivables discounting – in a digital, secure and decentralised way.”
The Komgo platform relies on blockchain technology to optimize financing processes, fight fraud and increase trade efficiencies. The platform is backed by 15 bank and commodities investors, which include ING, ABM Amro, and oil giant Shell.
Gwynne Master, managing director for Lloyds Bank commercial banking, described the international trade process as cumbersome and time consuming, adding:
“The process of trading a single commodity can take over 100 days, involves many players, considerable paperwork, and risk. Trade is particularly onerous for our commodities clients, where faster turnaround times and a streamlined channel are key requirements.”
Master added that Lloyds Bank decided to work with Komgo to speed up the international trade process for its corporate customers, by “significantly streamlining and digitising the process.”
Crypto is drawing the attention of big-name banks
Peter Wuffli — the former CEO of major Swiss multinational investment bank UBS — said large banks such as UBS and Credit Suisse are paying more attention to crypto assets and industry developments, adding:
“From what we hear, interest has clearly picked up since the licenses were granted. Bank executives are asking their middle management to figure out whether this is just another fintech fad that comes and goes, or whether it is really transformational.”