Lloyds Bank has teamed up with blockchain firm Komgo, in an attempt to enhance its commercial banking division.
Reported by FStech on September 25, Lloyds Bank – one of the top clearing banking establishments in the UK region – announced that it would be utilizing Komgo’s system, in an effort to achieve a faster speed for commodity trade finance, on a global scale.
“Komgo’s DLT platform digitises and streamlines the commodity trade finance process, enabling businesses to quickly and automatically exchange data and associated documents across a wide range of solutions – from letters of credit and KYC management to receivables discounting – in a digital, secure and decentralised way.”
Komgo is a blockchain-based platform that offers solutions to optimize financing processes, combat fraud, along with making trade more efficient.
The platform is currently receiving support from 15 banks and commodities investors, nominally ING, ABM Amro, and oil giant Shell.
Gwynne Master, managing director for Lloyds Bank commercial banking, has shared her perspectives, regarding the international trade process, deeming it heavy and time-consuming.
“The process of trading a single commodity can take over 100 days, involves many players, considerable paperwork, and risk. Trade is particularly onerous for our commodities clients, where faster turnaround times and a streamlined channel are key requirements.” She further claimed.
Therefore, Lloyds Bank has decided to partner with Komgo, to amp up the speed for the international trade process, currently servicing corporate clients, by “significantly streamlining and digitising the process.”