Letters of Credit end-to-end processing
Challenge
- Traditional trade finance, and in particular Letter of Credit (LCs), have been the focus of digitization initiatives for many years
- Despite strong standards, the inefficiencies of paper-based processes along the multiple phases of trade transactions impact cost, complexity and turnaround times
- These issues result in reduced margins for traditional bank LC business and tough competition for client business from other working capital solutions
Solution
- Contour delivers a decentralized, digital global network for trade finance, over a distributed ledger, which allow parties to transact and view information securely
- It has proven to reduce end-to-end processing time for Letters of Credit by 90% or more, simplifying the process for all participants and enabling new business opportunities for banks, corporates and trade ecosystem players
- Uses open APIs to integrate a range of world-class partners to harmonize multiple digital networks and provide a seamless and convenient experience to users
- Why Corda? It best addresses the privacy, security and throughput demands of trade finance networks
Results
- 90% reduction in end-to-end processing time
- 80+ banks and corporates tested Contour with trials in 17 countries before its launch
- Transparency, efficiency and security for Letters of Credit (LCs)
