Contour, the Singapore-based open trade finance network, has announced on Tuesday its partnership with IntellectEU to digitize its trade financing on a global scale.
IntellectEU will act as the integrator of Contour’s blockchain, thus automating back-office flows for both financial institutions and corporates.
“We have consistently highlighted connectivity as a vital factor in improving trade and trade finance. The sheer volume of organizations in a single transaction has traditionally made communication difficult and disjointed. This no longer needs to be the norm,” Carl Wegner, Contour’s CEO, said.
“Our partnership with IntellectEU is another step towards providing improved collaboration in the sector without creating barriers to adoption or access. Now, with a greater emphasis on established institutions being able to work more flexibly, there’s huge potential for banks and corporates to engage with our network and enhance their operations.”
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Huge potential for blockchain in the industry
For trade financing, the company will utilize IntellectEU’s Catalyst Integration Solution (CAT-IS), allowing financial institutions to securely exchange information in different data formats, linking their existing infrastructures together.
Trade financing is a heavy paper-based industry, and the use of blockchain can reduce the process of issuing a letter of credit (LoC) by seven days.
According to the announcement, IntellectEU’s clients will also enjoy streamlined communication and collaboration opportunities, without the disruption of overhauling their own operating and information systems.
“It is easy for technology to be viewed as the one-stop-shop solution. However, for the trade finance sector, enhancing LC issuance through blockchain and other technology can really make a difference,” Thomas Bohner, VP blockchain & DLT solutions at IntellectEU, added.
“The sector has huge potential for greater collaboration by overcoming the internal processes that would have historically created barriers. Through partnering with Contour, we look to help grow the network, giving banks and corporates the opportunity to benefit from this improved way of doing business.”