HDBank joins Contour network to improve Letters of Credit issuance

HDBank joins Contour network to improve Letters of Credit issuance
06.05.2020 07:57 am

HDBank joins Contour network to improve Letters of Credit issuance

Banking

HDBank, the Vietnamese-based financial institution, has today joined Contour, the open trade finance network, to increase its ability to extend trade financing to more corporates. This addition to Contour's blockchain-based network further strengthens its offering to the trade finance industry.

HDBank is the latest financial institution to join Contour and marks the first bank in Vietnam to be part of the company's trade finance network. This offers an opportunity for Vietnamese corporates to take advantage of the online negotiation and streamlined management of Letters of Credit with counterparties in Asia, Europe, the Middle East, and the USA.  

Built on R3's Corda, Contour's network is focused on overhauling the Letter of Credit (LC) issuance process. LCs are traditionally paper-based, time consuming to process and costly to deal with. By digitising LCs on a blockchain network, the processing time and cost involved will be significantly reduced. With the current socio-economic climate, the need for further efficiency in the market has grown even more apparent.

Carl Wegner, CEO, Contour said: "The focus with our network has always been to establish a neutral platform that all different types of banks and corporates can use for trade finance transactions. To fully unlock the potential of what enterprise blockchain can bring to trade finance, banks and corporates need to be able to collaborate and forge new connections. That is the ultimate aim of Contour, and it's something we're continuing to see as we welcome HDBank into the network."

Phạm Quốc Thanh, CEO at HDBank, added: "We saw the potential for Contour to revolutionise how we issue LCs and knew it was an opportunity like no other. From working with Carl and his team, we hope to change that, providing increased flexibility with LCs, streamlining the process and providing funds to corporates in a far more efficient manner than ever before. In due course, we look forward to sharing news of transactions taking place on this network."

 

Related News

ClearBank Becomes First Clearing Bank to Offer Multi-Currency Bank Accounts via API

ClearBank, the cloud-based clearing bank, has become the first clearing bank to offer multi-... Read more »

Paymentology and Thought Machine Collaborate to Create Digital Banking Platform

Paymentology, the UK cloud-native payment processor, is partnering with digital banking platform Thought Machine, to bring rapid integration... Read more »

Commerzbank Issues the Second Own Green Bond €500 Million Worth

Commerzbank AG has today very successfully issued another Green Bond with an issuance volume of €500 million. It is the Bank’s second own Green Bond after the... Read more »

FT Survey: 78% Say UK Banks Have “Surprised Themselves” With Their Adaptability During COVID-19

Appian (NASDAQ: APPN) today published survey results examining the response of the UK banking sector to the coronavirus pandemic, revealing that nearly three-... Read more »

Saudi Arabian Fintech Hakbah Joins Visa’s Fintech Fast Track Program

Hakbah, an alternative financial saving platform based in Riyadh, Saudi Arabia, today announced that it has joined Visa’s Fintech Fast Track... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel