Standard Chartered Multinational Bank in collaboration with Siemens and TradeIX are creating a first-of-its kind, end-to-end blockchain-based smart guarantees platform that entirely digitizes the banking process, from guarantees initiation to claim handling, according to a news release by the Standard Chartered on August 30, 2018.
Eliminating Paperwork via Blockchain Technology
According to the team, the blockchain initiative is aimed at drastically reducing much of the paperwork involved in the “Bank Guarantees” business. The partners claim that their smart guarantees solution is the first DLT client pilot that entirely digitizes the process from start to finish.
Motasim Iqbal, Head, Transaction Banking UAE, Standard Chartered, has reiterated that blockchain solution has all it takes to transform the issuance of guarantees in the UAE. In his words:
“This is an industry-defining solution which we believe will transform the way guarantees are issued and processed in the UAE.” He also hinted that if all things goes as planned, the DLT solution would be adopted by the “Dubai Smart City initiative.”
As stated in the report, the system would also enable the financial services arm of Siemens to digitize its guarantee process for clients with “large transaction volumes, spanning issuance, amendments and claims,” and entirely eliminate the inefficiencies of the paper-based process of today.
DLT Digitization Revolutionizing Industries
Blockchain technology, the building blocks of bitcoin and other cryptocurrencies is gaining more and more mainstream adoption with each passing day, as firms all over the globe are continually on the lookout for fail-proof methods of increasing productivity while cutting cost at the same time and DLT has all the answers.
The Chief Financial Officer at Siemens LLC, Michael Bueker noted that digitization remains top priority at the firm, as it would enable it to operate more smoothly and efficiently.
“…this move is part of our strategic mission of going digital in all arenas,” he said, adding “This will streamline our processes and make our trade finance operations smoother, faster and more efficient.”
It’s worth noting that heavyweight financial institutions as well as forward-thinking organizations are all latching onto the blockchain technology bandwagon in order not to be left behind in innovation.
Interestingly, on August 30, 2018, highly reputed multinational professional services network, PricewaterhouseCoopers announced the impending launch of its Digital Accelerator program aimed at training 1,000 of its employees on DLT and other digital technologies.