International Bank Reduces Trade Risk

Blockchain Technology improves Risk Management in multi-party transactions

Company Overview

The International Bank headquartered in South East Asia operates in 50 countries, mainly dealing with commercial customers to facilitate cross-border trade transactions.

With its extensive network of branches and expertise in international trade, the bank provides a range of financial products and services to meet the needs of its customers. The bank’s commitment to innovation and technology ensures that it stays ahead of the curve in providing efficient and secure banking solutions to its clients.

Problem Statement

Banks in the space of corporate risk sell down face several risks that can impact their operations, profitability, and reputation. One of the main risks is the possibility of significant losses due to credit defaults or market volatility.

Additionally, these banks may face legal and regulatory risks, including non-compliance with anti-money laundering and other financial regulations. There is also a risk of reputational damage due to negative publicity or customer dissatisfaction, which can lead to loss of business and market share.

Furthermore, banks in the space of corporate risk sell down may face operational risks such as errors in data processing or system failures. Overall, effective risk management strategies are critical for these banks to minimize these risks and ensure long-term success.

Solutions

The International Commercial Bank implemented a blockchain-based solution that leverages a distributed ledger to digitize the process for risk distribution.

By implementing this solution, the bank was able to streamline the process and reduce the risk associated with traditional paper-based processes.

The distributed ledger allows for secure, transparent and tamper-proof record-keeping, which ensures that all parties have access to the same information, reducing the likelihood of errors and fraud. Additionally, the solution offers real-time monitoring of transactions, allowing for faster identification and resolution of potential issues.

Ultimately, the blockchain-based solution has helped the bank to improve its efficiency, reduce costs, and enhance its risk management capabilities.

We are freed by blockchain system. Risk sell down is all about managing trade risks on Letter of Credit confirmations with customers. This was a cumbersome process for three teams in three different locations working on excel and email. The dlt Platform helped with collaborative participation of various users both internal and external to the bank with a single source of truth and immutable audit trails.”

Senior Technology Executive

Blockchain and Digital Assets, International Bank

Benefits

Platform and the application help streamline Risk distribution in banks that sell-down their risk.
Operations involving sell-down of FI Assets and Corporate Assets via aa secure channel with digital network of participants in MRPA with data/document exchanges shared in real-time is a real game changer to save time and bring process efficiencies.
System brings more transparency and generates more value in the network, providing faster time to resolution and reduced fraud.
Visibility into transaction generates more confidence in client and their operations.
Building and expanding the client network is made easy via the platform into newer markets.

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.