​The Commercial Bank of Ceylon's has introduced its host-to-host (H2H) payment services as part of its 'ComBank Digital' platform, targeting corporate clients.

This service facilitates direct integration between the bank's systems and clients' enterprise resource planning systems, enabling seamless and secure processing of bulk payments and collections.​

The digitisation of trade finance processes, including the introduction of services like H2H, is poised to transform traditional methods such as letters of credit (L/Cs).

Impact on L/C business

By adopting digital solutions, corporates can achieve better control over their credit facilities, reduce fees, and expedite application processes, thereby increasing transaction volumes without necessitating additional credit, according to the bank.

Specifically, it says that electronic L/Cs enable instantaneous document exchanges between parties, reducing the time required to complete cross-border transactions. ​

Accelerating transaction times

The implementation of digital trade finance solutions by the Commercial Bank of Ceylon is expected to streamline trade processes, enhance efficiency, and potentially reduce reliance on traditional paper-based L/Cs.

This shift not only accelerates transaction times but also minimises errors and operational risks associated with manual documentation, thereby offering a more efficient alternative to conventional trade finance instruments.​

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.