Lloyds Bank Collaborates With Blockchain Firm Komgo to Simplify Trade Finance
Lloyds Bank is collaborating with blockchain solution provider Komgo to improve the operational capability of commercial banking business.
Lloyds Bank, one of the top four clearing banks in the UK, stated that it would employ Komgo’s platform to “enable quicker international commodity trade finance.” The bank further explained the benefits of Komgo’s blockchain platform:
“Komgo’s DLT platform digitizes 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 decentralized way.”
The blockchain platform enables efficient funding processes, combat fraud and improves trade efficiencies. The blockchain platform is supported by 15 bank and commodities investors, including ABM Amro, ING and energy company Shell.
Gwynne Master, managing director for Lloyds Bank commercial banking, explained the global trade as complex and prolonged process. Master said
“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 further stated that Lloyds Bank chose to join hands with Komgo in order to quicken the global trade process for its corporate clients by “significantly streamlining and digitising the process.”
Peter Wuffli, ex-CEO of top Swiss multinational investment bank UBS, stated that big banks such as UBS and Credit Suisse are giving more attention to crypto assets and changes in industry. Wuffli said
“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.”