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TDB Digitizes Forfaiting and Revolutionizes Cross Border Financing

The use of Blockchain Technology improves bottom line and reduces risk.

Company Overview

Trade Development Bank of Africa (TDB) is a commercial bank headquartered in Nairobi, Kenya that provides a range of banking and financial services to customers across East Africa.

Established in 1993, TBA has grown to become one of the largest banks in Kenya, with a network of over 20 branches and more than 50 ATMs across the country. TBA’s services include corporate banking, personal banking, trade finance, treasury and investment banking, and more​.

Problem Statement

Trade Development Bank of Africa (TDB) faced a challenge due to the lack of digitalization in its cross-border financing operations.

This resulted in increased processing times, higher operational risks, and increased costs of business, leading to lower profit margins. TDB’s forfaiting business, which relies on speed and low costs, was impacted by this lack of digitization, as TDB was not able to move fast enough to capitalize on this high-growth business.

To address this challenge, TDB needed to invest in digitization and modernization of its trade finance operations to remain competitive and meet the needs of its clients in a rapidly changing global trade landscape.

Solutions

The #dltledgers blockchain technology streamlines the management of Master Facility Agreement between Corporate and Forfaiting banks. It shortens cycle time and enhances process efficiency, improving customer relations.

The application enables real-time collaboration among multiple parties in different locations, with authentication and verification of shared data and documents. The #dltledgers platform facilitates effective tracking of offer, acceptance, disbursements, and settlement with enhanced end-user experience.

The application replaces paper offer and acceptance with blockchain-based digital agreements, allowing for quicker processing, earlier fund disbursement, and higher income opportunities for the bank.

We are thrilled to have launched our blockchain operations with our partners, #dltledgers. We see the potential to revolutionise how we finance cross-border transactions at the bank. Not only will it impact our bottom line, but it will enable us to reduce processing time, be more responsive to our clients, and de-risk transactions​.
Michael AworiCEO
Trade Development Bank (TDB), Group, Burundi, Africa​

Benefits

  • The streamlined process has cut corporates average working capital cycle by about 15 to 20 days.​
  • Banks can increase their revenue opportunities and broaden its reach into customers globally​.
  • A web-based application using blockchain technology in a collaborative ecosystem. There is competitive advantage derived from data sharing and an ecosystem approach digitally​.
  • The efficiency of the solution has provided corporates to streamline their business better with improved cashflows.

Product Capabilities

  • Easy Network Creation and onboarding multiple parties​
  • Digital Assets configured to be maintained as part of the distributed ledger with blockchain​.
  • Real Time notification to expedite and avoid any delays in shipments across multiple parties​.
  • avoid any delays in shipments across multiple parties​.

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