Standard Chartered has announced news Wednesday (August 29) that it is collaborating with Siemens Financial Services, the financial arm of Siemens and TradeIX, a digital commerce provider, to lead the first customer pilot to create an end-to-end blockchain smart guarantee proposal in commercial finance.
In a press release by Finextra, The Standard Chartered said that the goal is to transform the business of paper-intensive bank guarantees by blockchain. The bank said it is the first blockchain client pilot to completely digitize the process from the start of the bank guarantee to the handling of requests.
"This is a solution that defines the industry will transform the way in which guarantees are issued and processed in the United Arab Emirates Siemens Financial Services was for us a key partner for the creation and development of this pilot on the book Distributed and we believe that this technology can be further exploited by the Dubai Smart City initiative, "said Motasim Iqbal, Head of Transaction Banking UAE, Standard Chartered, in the press release.
According to Standard Chartered, a commercial bank guarantee is easier to digitize than, for example, a letter of credit that involves multiple parts and reams of documents. The bank said the blockchain pilot will allow Siemens to digitize the guarantee process for customers with large volumes of transactions – in the future covering insurance, amendments and complaints and eliminating the inefficiencies that are present today.
"While digitization is revolutionizing entire industries, incorporating digital commercial finance solutions into our day-to-day operations is an important step, especially in Siemens, as a pioneer of digitization, this move is part of our strategic mission to go digital in all the arenas, which will simplify our processes and make our commercial finance operations smoother, faster and more efficient.We are pleased to partner with the Standard Chartered to drive this revolutionary transformation, which will help our customers become digital in their warranty and proclaim processes and achieve greater efficiency, "said Michael Bueker, Chief Financial Officer, Siemens, in the same press release.
The Standard Chartered states that the pilot project started in March 2018 and will be completed by the end of the year. The proposition is based on self-executing intelligent contracts, which exploit the distributed Ledog of Corda and the level of application provided by TradeIX.