Bangkok Bank and partners launched “Contour” to revolutionize international trade transactions valued at 18 trillion US dollars. This digitalizes letters of credit from end-to-end.
Bangkok Bank Executive Director Charamporn Jotikasthira said Bangkok Bank is the first bank in ASEAN to join with R3 in using Distributed Ledger Technology or Enterprise Blockchain to develop trade finance services. Under this collaboration, Bangkok Bank and other leading banks and global companies set up a new company “Contour” to provide trade finance services. In the first phase, the company will provide a letter of credit (L/C) with the whole process on a digital platform. This will enhance efficiency and save time, transforming trade finance services valued at 18 trillion US dollars.
“Contour will allow customers to make L/C transactions more quickly as trade partners or related companies will see information at the same time and in real-time. By making transactions transparent, accountable and highly secure, customers can operate their businesses more efficiently. Through this collaboration with leading global trade finance banks, Bangkok Bank customers will be able to make speedy transactions with trade partners around the world. The Bank is confident this service will be well received by importers and exporters. By introducing new technologies, continually developing services, and enabling customers to compete in the global marketplace we can support their success, as an expert and trusted partner”, said Mr. Charamporn.
Mr. Carl Wegner, CEO, Contour said international trade previously involved a lot of documents and high costs. Daily international trade transactions worth many trillions of US dollars a day cause huge losses for people in the international trade business. Contour will establish an international trade network that can provide real-time and credible information and this will ensure the efficiency of digital L/C.
Contour was developed from R3’s CORDA Enterprise Blockchain and has been successfully tested by 50 banks and partner companies in 14 countries worldwide. It can reduce the transaction process from 5 - 10 days to less than 24 hours, or 90% faster.
“We appreciate the banks and companies that have joined this project and co-developed a new and more efficient L/C service that creates real value for businesses. Contour will be available for companies that want to upgrade their international trade”, said Mr. Wegner.
He added that Contour aims to collaborate with all parties in the growing international trade community and expand its network with banks, companies and trade partners.
For more information of Contour: http://www.contour.network