Lloyds partners Komgo for blockchain trade finance platform
Written by Hannah McGrath
Lloyds Bank has partnered with distributed ledger technology firm Komgo to launch a blockchain-based platform for its commercial banking division.
The lender announced that Komgo’s platform would use distributed ledger technology (DLT) to enable quicker international commodity trade finance.
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.
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.
Lloyds Bank is the first UK bank to partner with komgo and make the platform available to its clients.
Gwynne Master, managing director and global head of trade for Lloyds Bank Commercial Banking, said: ‘Cumbersome’ and ‘time-consuming’ are just two words 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.
Commenting on the partnership with Komgo, Master added: “We’re working together to shorten the time it takes our corporate clients to trade internationally by significantly streamlining and digitising the process.”
She explained: “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. Partnerships like this, and the technology that underpins them, will help mitigate the pain points our clients face and support British businesses to prosper internationally.”