DBS Bank, the Singapore-based multinational banking company, has joined the Contour retail and finance chain based on Corda de R3. The main launch of Contour is planned for the end of this year.
According to a May 11 report by the Business Times DBS Bank is the first in Singapore to join the network. Contour was founded by major institutions such as BNP Paribas, the Bangkok Bank, ING, HSBC, Standard Chartered and Citi Ventures.
Digitization for efficiency
DBS hopes to be able to digitize its letter of credit processing process from start to finish using the platform’s blockchain solutions. The bank is committed to reducing settlement times, reducing paperwork and simplifying the negotiation or trading process.
Contour will also help DBS corporate customers to conduct pre-digital emissions negotiations between applicants and beneficiaries in real time, increasing the accuracy of the letter of credit.. Real-time tracking and audit trails of transactions provide more transparency and help to deny or correct inconsistencies more effectively.
John Laurens, head of DBS Bank’s global transaction services group, spoke about the innovation Contour could bring to the retail and financial ecosystem:
It is about changing the way industry works and creating more transparency, security and speed to build sustainable business ecosystems that can withstand the ups and downs of economic cycles and are resilient in times of crisis.
Contactless banking in the middle of Covid-19
Cointelegraph reported in March that Contour had successfully tested its platform last year, posting letters of credit worth $ 30 million.
In the traditional trade finance system, most processes require human intervention and a lot of paperwork. Given the Covid 19 crisis now It is more important than ever to prepare for a more contactless form of the trading process.
To address the issue, Ajay Sharma, HSBC Regional Manager for Global Trade and Accounts Receivable Finance, He previously said: “Using blockchain for trade finance has overcome the physical constraints we have today.”
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