Standard Chartered Pilots Blockchain Smart Guarantees In Trade Finance

Blockchain, News | August 29, 2018 By:

Multinational banking and financial services firm Standard Chartered is devloping an end-to-end blockchain-based smart guarantees proposition in trade finance.

Standard Chartered, in collaboration with Siemens Financial Services and blockchain startup TradeIX, aims to fully digitize the processes involved in bank guarantees business – from initiation of the bank guarantee to the claim handling. Standard Chartered is currently conducting a client pilot that will be fully completed later this year. The proposition is based on auto-executing smart contracts, leveraging the Corda blockchain and application layer provided by TradeIX.

“This is an industry-defining solution which we believe will transform the way guarantees are issued and processed in the UAE,” said Motasim Iqbal, Head, Transaction Banking UAE, Standard Chartered. “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.”

The blockchain solution will enable Siemens to digitize its guarantee process for customers with large transaction volumes, spanning issuance, amendments and claims, eliminating the multiple touch-points and inefficiencies which are inherent in the existing paper intensive process.

“While digitalization is revolutionizing whole industries, incorporating digital trade finance solution into our daily operations is an important step,” said Michael Bueker, Chief Financial Officer, Siemens. “Especially at Siemens, as a digitalization 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.”

Samuel Mathew, Global Head of Trade Products at Standard Chartered, said that technology is core to Standard Chartered’s strategy and they remain fully committed to delivering the next generation of trade products to facilitate trade flows for their clients across Asia, Africa and the Middle East.

“The future of trade is going to be all about data,” said Mathew. “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.”