Lloyds Bank, traditionally one of the Big Four’ clearing banks, announced today that it has partnered with a blockchain-based platform, Komgo to enable quicker international commodity trade finance.
The new partnership, according to today’s release, will allow Lloyds Bank to take advantage of a technology that accelerates the time taken to complete trade finance transactions and thus shorten cash flow circles.
Other benefits singled out by Lloyds Bank as the reason why they’re adopting Komgo’s blockchain-based platform is that it will reduce the risk of fraud, while also allowing parties in a deal to monitor transactions in real-time.
Lloyds Bank is notably the first U.K bank to adopt Komgo’s blockchain-based solution, which is also available to other sectors and industries beyond commodities businesses.
Commenting on the partnership, Gwynne Master, global head of trade for Lloyds Bank Commercial Banking used ‘cumbersome and ‘time-consuming’ to describe the current process of trade finance transactions.
He explained that in some cases, a single transaction could take as much as 100 days given the involvement of many players, paperwork, and risks. However, Gwynne expressed confidence that adopting Komgo’s solution will help Lloyds Bank to tackle these challenges and achiever quicker turnaround for their clients.
“We’re working together to shorten the time it takes our corporate clients to trade internationally by significantly streamlining and digitizing the process,” the official said.
In a similar development about banks adopting blockchain technology, Stmarket.co reported that Three of Ireland’s Big Four Banks — Bank of Ireland, Ulster and AIB —started a pilot program that involves the use of a blockchain-based solution to verify staff credentials.