Bangkok--8 Dec--Bangkok Bank
To reduce operating costs and increase business efficiency, Bangkok Bank has joined 'R3-TradeIX-CGI'. This will enable the bank to be at the forefront of financial technology development and meet the requirements of all customer segments by leveraging trade finance services for both open accounts and letters of credit (L/C).
Bangkok Bank Executive Vice President in charge of Shared Operations Pornnit Dunnvatanachit said: "The bank is committed to developing financial services to better serve its customers. Accordingly, we have partnered with 'R3 Consortium', a FinTech software developer, and 'TradeIX', a trade finance technology developer, to apply distributed ledger technology, or blockchain, to open accounts in trade finance which will help improve service efficiency, security and convenience because it can be adapted to various needs.
"This service will enable financial institutions to automate pre-and post-shipment financing and risk mitigation for corporate buyers and sellers around the world. In turn, corporate buyers and sellers can trade more easily and access credit and risk mitigation services at critical points in the trade lifecycle. Furthermore, the system is designed to be used in conjunction with other platforms.
"This service will demonstrate the practical benefits of distributed ledger technology. Moreover, it supports knowledge sharing between members of the consortium of financial institutions that are working together. Trade finance is an ideal area in which to test this concept because trade finance involves many different parties, including some which may be unknown or not trusted. We are confident that the collaborative approach of the consortium created by R3 will allow us to accelerate progress and provide relevant and valuable solutions to our valuable customers," Mrs. Pornnit said.
Bangkok Bank Executive Vice President Ian Guy Gillard said that under the collaboration with R3 members, Bangkok Bank is one of eleven partner banks that can use new applications which R3 and its technology partner, CGI, co-developed to support the issuance of Letters of Credit. The issuance will be more efficient with fewer required working steps required and lower costs as it can link suppliers and logistic providers. Letters of Credit are still important products for international trading and both parties can promptly access all delivery details under the same standard, even when they use different technologies.
Bangkok Bank has become a member of Banking Industry Architecture Network (BIAN), an independent not-for-profit association that promotes a world-class architectural framework for banking interoperability. There are four main member groups: financial institutions, software vendors, service providers of the bank industry, and academics.
For consumers, the bank has partnered with Bualuang Asset Management Company Limited (Bualuang Fund) and FundRadars to launch the Bualuang Fund application (BF) as a convenient tool for investment unit holders to access information and make transactions quickly and conveniently – anywhere, anytime – through digital channels. FundRadars was one of the startups selected for the final round in the fintech startup accelerator program, Bangkok Bank InnoHub.
Bangkok Bank has also continuously developed its services for money transfers and payments via PromptPay in line with its customers' needs. Bangkok Bank's customers can now use the Bualuang mBanking application to scan QR Codes to pay for their purchases without using cash. The bank has also launched 'QR Code Payment on EDC' for large business enterprises. The money will be directly transferred to businesses' bank accounts, providing them with better cash management. The new way of payment will not only provide businesses with daily reports, but increase their payment channels and reduce management costs. The system will boost business competitiveness by providing quick, convenient and safe payments that perfectly serve the trends towards mobile banking transactions. It is also in line with the government's policy to encourage Thailand to become a cashless society under the National e-Payment Master Plan.