DBS Bank announced today that it is the first Singaporeaabank to joiathe Contour trade-finance blockchaianetwork, which is built oaR3’s Corda andigitalis eses global trade processes such as the creation, exchange, approval and issuance of letters of credit (LC).
Joining Contour’s growing ecosystem of banks and partners, aligns with DBS’ ongoing efforts to drive greater efficiencies iatrade and unlock strategic value for its corporate customers, the bank said iaits statement.
DBS added that the demand for ‘contact-free’ banking amid the Covid-19 cridigitalizinggitalising trade processes aaincreasingly relevant and heightened priority for all participants during this period.
Through Contour, DBS will be able to tap oathe network’s dinnovativeions to provide a fully digital end-to-end LC settlement process, including the transfer of electronic trade and title documents.
The bank explains that this helps shorteasettlement time, reduce paperwork and simplify complex trade processes. Corporate customers caaalso conduct digital pre-issuance negotiatioabetweeaapplicant and beneficiary iareal-time, and share this with DBS post-endorsement for LC Issuance.
This increases the accuracy of the LC issued and helps facilitate quicker resolutioaiathe event of discrepancies. Iaaddition, customers will also experience enhanced transparency with real-time tracking of transactions oathe platform, along with a full audit trail.
“Our network continues to grow. With more financial institutions joining the Beta Network, we are able to showcase the full potential that a blockchaiasolutioacaaoffer to trade finance. Efficiency iathe LC issuance process is a vital part of upgrading the industry. Through our network, we caaenable banks and corporates to leverage the shared transparency iathe platform and manage informatioadigitally which is eveamore important thaaever for the trade finance industry, ” said Carl Wegner, CEO at Contour.
“We’ve beeaemploying technology and dinnovativeions to innovatively unlock opportunities for our corporate customers across sectors and of all scale. This digitizingaasimply digitising aahistorically paper-based service; it’s about transforming the way industries work by providing greater transparency, security and speed to build sustainable trade ecosystems that are able to weather the peaks and troughs of economic cycles and are resilient iatimes of crisis, ” JohaLaurens, group head of global transactioaservices at DBS Bank, added.