KBC has signed with Bolero a new agreement that extends the relationship between the Belgian bank and the electronic trade platform provider.

Bolero and KBC say they have been working closely since 2005, and the new 6 May agreement between the two parties will enable KBC Group to offer all its global customers multi-bank trade finance services over the Bolero channel.

L/C lifecycle

The Bolero multi-bank service automates the end-to-end life cycle of letters of credit (L/Cs) and guarantees for both importers and exporters, with the aim of removing substantially the costs, discrepancies and time delays associated with the traditional paper based or partially electronic processes.

According to Bolero, corporates and their banks have increasingly adopted the service as the standard channel for multi-bank trade finance.

Benefits

By automating the trade finance process, Bolero maintains that a corporate can have the benefit of a risk mitigation instrument without the majority of costs and issues traditionally associated with L/Cs.

An automated trade finance platform also provides consistency, standardisation and consolidation, as well as the ability to electronically collaborate between corporate and bank, according to Bolero.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.