Bangkok Bank and GCM, a company of GC Group, develop L/C transactions between Thailand-Vietnam on Enterprise Blockchain, the first bank to succeed in revolutionizing the service using ‘Contour’ technology
Bangkok Bank and GC Marketing Solutions Limited (GCM), a company under GC Group, the chemical flagship of PTT Group, have successfully studied and developed L/C transactions between Thailand and Vietnam using the latest technology on the Beta Network of ‘Contour’, a company which was co-founded by Bangkok Bank and other leading global banks and organizations, to provide trade finance services using the Enterprise Blockchain Platform and cut the time for opening L/C to only one hour.
Bangkok Bank Executive Vice President Pipat Assamongkol said the bank is developing innovative services that will support customers in the digital era and this is another successful milestone. Bangkok Bank joined with GC Marketing Solutions Limited (GCM), a company under the GC Group, the chemical flagship of PTT Group to co-study and develop Letters of Credit or L/C transactions between Thailand and Vietnam using the latest technology on the Beta Network of ‘Contour’ on the Enterprise Blockchain Platform to enable OPEC Plastics Joint Stock Company in Vietnam, a trade partner of GCM, to open digital L/C via Bangkok Bank Hanoi branch and send it to Bangkok Bank Thailand. This enables GCM to export goods as agreed in the L/C. Bangkok Bank is the first bank to succeed in developing this kind of service. This also reinforces the bank’s success in being the leader in studying and developing L/C transactions between Thailand and Indonesia as well as other countries in Asia in 2019.
“This success underscores the strengths of Contour – a company that was established and registered in Singapore with 11 leading global banks and organizations, including Bangkok Bank, the first Thai bank to become a shareholder and join the Contour project. Bangkok Bank has worked with R3 since it was established to jointly revolutionize trade finance using the Enterprise Blockchain Platform. They have been working together to develop a network of trade finance information that is reliable and efficient and helps reduce trade restrictions between trade partners. The strength of Bangkok Bank’s network, which covers the world’s major economies, and is concentrated in Asia and ASEAN, has helped connect the trade finance network of the Contour project to all major regions of the world, including Asia, facilitating customers in the import and export business in every region in the world.”
Mr. Pipat added that customer transactions can be done quickly by adopting digital formats throughout the process allowing all partners to see information at the same time on the same Enterprise Blockchain Platform. This has made L/C opening easier, agile, and faster. It is also transparent and highly secure, with information able to be examined at every step. With this development, the operation time and the use of documents were reduced. Reconciliation was no longer needed as all involved parties collected the same data and acknowledged the change in status at the same time, increasing the efficiency of both the customers’ business and banking services.
PTT Global Chemical Public Company Limited Executive Vice President – Finance and Accounting Miss Duangkamol Settanung said PTT Global Chemical Public Company Limited and its subsidiaries are using Blockchain to drive business efficiency and strengthen leadership as a sustainable petrochemical business. The company realizes the importance of and benefits of adopting Blockchain which will be fast, efficient and accurate, enhancing the efficiency of the company’s internal and external management system. The Blockchain transaction was made by the company’s Trading Flagship GCM and it enables trade partners to easily check transaction details that are transparent. The latest transaction was trade digitization under Blockchain using the Contour platform with a Letter of Credit from its trade partner in Vietnam OPEC Plastics Joint Stock Company to Bangkok Bank, The operating time was reduced from three weeks to only 24 hours, meeting the need for fast and secure transactions, both today and in the future. Blockchain is an innovative technology that benefits the environment and conserves natural resources. The company will make huge cuts in its paper use as the current process of Letters of Credit requires the seller to present paper documents in order to collect money from the bank that opens the Letter of Credit.
Mr. Thitipol Artsanchorn, Managing Director of GC Marketing Solutions Company Limited said this is another step forward for GCM in their collaboration with Bangkok Bank in using the latest technology to empower the business according to the vision and mission of the company.
“The transaction between Thailand and Vietnam on the Contour application has given an extremely satisfactory result. The L/C document issuing process can be completed in one hour because of the revolutionary digital transaction model where all information is updated in real-time, reducing documentation and administrative costs. Conditions can be agreed or amended between the partners instantly on the same platform, giving all parties the visibility of information and better financial planning”.
Carl Wegner, CEO at Contour, said: “We’re continuing to establish a consistent, reliable and interoperable network for our members. For too long, the lack of a common network has been a key reason why LCs, and trade finance in general, has been held back from digital transformation. With no standard connectivity between the world’s banks and corporates for communication or data sharing, there are inherent inefficiencies and barriers to growth. Our network is solving this problem, growing its presence across regions and sectors. With this latest transaction, Contour is showcasing its ability to manage any type of trade.”