Finastra has announced a strategic collaboration to integrate its Fusion Trade Innovation platform for internal banking processes with digital letter of credit (L/C) developer Contour with the aim of providing banks and corporates with streamlined end-to-end back-office workflow.

Users may access their data through either platform, providing banks with increased efficiency and faster turnaround times when processing L/C transactions according to London-based Finastra. It hopes its collaboration with Singapore-based Contour will provide increased access to trade finance and stronger returns for banks.

Reduced L/C cycle

The collaboration combines Finastra's deeply integrated core banking platform for internal processes with Contour's decentralised network for bank and corporate customer communication.

The solution claims to offer full transparency and visibility, reducing the L/C lifecycle by up to seven days, thereby freeing up working capital for corporates and improving returns for banks.

Digital acceleration

The two fintechs say they intend to further accelerate adoption of digital trade solutions. Finastra is focused on making it simple for financial institutions to connect seamlessly to the global trade ecosystem so they can maximise business efficiency and develop new business opportunities.

"We're pleased that this collaboration enables corporates, particularly small- and medium-sized enterprises, access to trade and working capital finance where they transact," according to executive vice-president, lending business unit at Finastra, Isabel Fernandez.

Access to trade finance

Contour's CEO, Carl Wegner, meanwhile sees the partnership with Finastra as "an important step forward in breaking down barriers to adoption and increasing access to trade finance."

"By integrating with Finastra's Fusion Trade Innovation, financial institutions and corporates will have access to an end-to-end ecosystem of services that will enable them to transact seamlessly and securely," he concludes.

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