KBank develops DLT Letter of Guarantee network
Written by Chris Lemmon
Thailand’s Kasikornbank (KBank) has partnered with IBM to launch a new enterprise Letter of Guarantee network based on IBM Blockchain.
The new solution is designed to help simplify and expedite procedures for KBank’s Letter of Guarantee process, with the goal of improving the customer experience, strengthening security and reducing costs for clients and the bank.
The more digitised service means the solution is entirely paperless, while the transparency provided by blockchain can help to eliminate forgery and provide efficient service delivery. The process which previously took several days has been significantly shortened.
Letters of Guarantee issued via the commercial banking system in Thailand are expected to reach over $40 billion, increasing by eight per cent in 2017. Of that total, approximately $9 billion will be issued by KBank, which has the largest share of the market at 25 per cent. KBank is targeting an increase in Letter of Guarantee issuance via electronic channel to 35 per cent by the 2018 year-end, five per cent of which will be processed via the blockchain.
Pipit Aneaknithi, president of KBank, said: “Blockchain technology is applied to create highly secure networks of document filing and retrieval. As Thailand’s largest issuer of Letters of Guarantee, KBank is working with IBM to implement this innovative technology to further define and articulate our leadership in this market.”
Parnsiree Amatayakul, managing director of IBM Thailand, added: “Blockchain reduces traditional transaction barriers and can help to improve business processes in the financial services sector and beyond. As IBM continues to support KBank’s important initiatives in blockchain, the value this technology can bring to the bank and its clients is becoming increasingly clear, and can redefine the way businesses in the region operate and grow.”