All over the world, we’re entering a new era of simpler and more inclusive access to blockchain technology that has the potential to support strong, collaborative business relationships. The technology that underpins these potential game changers will help mitigate the pain points of businesses and users.
Lloyds Bank, a British retail and commercial bank and one of the “Big Four” clearing banks has become the first UK bank to partner with a blockchain-based platform to enable quicker international commodity trade finance using distributed ledger technology (DLT).
Decentralised Ledger Technology
Lloyds Bank has signed a partnership with Komgo, a platform that digitizes and streamlines international trade and commodity finance.
Komgo is a blockchain based platform that digitises and streamlines international trade and commodity finance, enabling businesses to quickly and automatically exchange data and associated documents across a wide range of solutions in a digital, secure and decentralised way.
As well as accelerating the time taken to complete trade finance transactions and therefore shortening cashflow cycles, the service can also reduce the risk of fraud and lets all parties monitor the progress of a transaction in real time. This boosts visibility and provides greater certainty for all involved which helps with planning ahead.
In order to speed up market adoption, komgo’s solutions are accessible not just to commodities businesses but to those in other sectors and industries. Lloyds Bank is the first UK bank to partner with komgo and make the platform’s benefits available to its clients.
Gwynne Master, managing director and global head of trade for Lloyds Bank Commercial Banking, said: ‘Cumbersome’ and ‘time-consuming’ are used to describe international trade today. 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.