Sumitomo Mitsui Financial Group (SMBC) says that it is joining two letter of credit (L/C) focused blockchain trade finance consortia, komgo and Contour.

The bank says that disruptions to established working practices caused by the coronavirus pandemic have highlighted the need for digital trade finance offerings.

Added value

SMBC is accelerating its move towards digital transformation and has already successfully trialled the Marco Polo open account blockchain platform.

The bank's joining with komgo and Contour aims to add even further value to its trade finance offerings.

Contour and komgo

Singapore-based Contour digitises L/Cs to allow banks and corporates improved efficiency and greater transparency by building connectivity and trust between all parties in the transaction. This is achieved by using R3's Corda blockchain and a growing partner ecosystem.

The komgo trade finance platform is currently focused on L/Cs, account receivables financing and know-your-customer (KYC) processing.

SMBC says both platforms appear to deliver significant efficiencies and transparency by digitalising L/C workflow, issuance, advice and funding.

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