Understanding the Blockchain Pilot

Standard Chartered has unveiled that it is undertaking a blockchain pilot focused on bank guarantees. The project uses the R3 Corda blockchain technology, putting the banking giant at the forefront of innovative financial solutions. The pilot, launched in partnership with Siemens Financial Services and TradeIX, aims to take the cumbersome, paper-laden process of bank guarantees and throw it into the digital age.

When Does This All Happen?

Initiated back in March, the pilot project is slated for completion by the end of 2018. By that time, Standard Chartered hopes to have crafted a model that allows for “real-time data” access, delivering efficiency gains that make today’s trade finance process look like a dinosaur in a digital world.

The Vision Behind the Technology

Samuel Mathew, the global head of trade products at Standard Chartered, has highlighted the transformative potential of this venture. He noted, “The future of trade is going to be all about data.” For anyone wondering, that’s like shouting ‘Eureka’ in the land of antiquated paperwork.

Streamlining the Process

What’s the big deal, you ask? Traditionally, bank guarantees are bogged down with heaps of paperwork, making them less efficient than a sloth trying to run a marathon. The new blockchain solution aims to fully digitize the process—from the initiation of the bank guarantee to the claims handling—significantly reducing redundancies.

Industry Insight

Rob Barnes, CEO of TradeIX, added a dose of optimism by saying, “We believe that global trade is at the cusp of multi-level digital transformation.” He thinks we’re on the verge of a revolution that could overhaul business models across the board. And you might want to keep an eye on this, especially given Standard Chartered’s history—a staggering loss of $200 million to fraud in 2014. Talk about learning from mistakes!