Digital trade finance network Contour has entered into a partnership with its first systems integrator in Vietnam, Tinhvan Technologies, to drive the digitalisation of trade finance in the country.
|Contour joins forces with Tinhvan to boost trade finance digitisation in Vietnam |
The tie-up adds to Contour's increasing list of systems integration partners such as IntellectEU, Mphasis, and ThoughtWorks China to assist with the implementation of the digital network across the financial industry. Contour will benefit from the cooperation with Tinhvan by being able to expand and scale with clients in Vietnam, which is one of the company's fastest-growing regions.
Tinhvan will integrate Contour's network with the back-office systems of Vietnamese banks and corporates to enable automated straight-through processing of Letters of Credit (LCs).
The trade finance business continues to be plagued by considerable inefficiencies due to its reliance on paper. Because of the large number of paper documents required and the time it takes to complete the transaction, Vietnamese enterprises often find LCs challenging to manage. At the moment, each stage of LC processing in Vietnam might take up to 10 days, resulting in a lock-up of valuable operating capital and a slower export pace.
Contour’s decentralised network will help businesses overcome this challenge, with a focus on creating streamlined connections between trade participants. Contour digitises the LC process, shortening the settlement time involved in traditional paperwork by over 90 per cent, removing the administrative barriers between buyers, sellers, and both their financial institutions.
With this partnership, Tinhvan’s clients will benefit from frictionless collaboration and communication with their counterparties, replacing time-consuming legacy processes without having to disrupt day-to-day operations.
Carl Wegner, CEO of Contour, said that, “Our digital trade finance network connects trade participants across the globe to enhance efficiency, cut costs, and improve access to financing. However, the key to driving adoption is to simplify integration with the often-complex legacy systems banks and corporates are forced to deal with in the back office – and our partnership with Tinhvan Technologies does just that. We are excited to build on our relationship with Tinhvan as we continue to grow our footprint amongst banks and corporates in Vietnam.”
Hoang To, chief executive at Tinhvan Technologies, said that, “We pride ourselves on partnering with firms at the forefront of technology like Contour, and as a software development company, we are always seeking innovative products that assist our customers in enhancing their productivity and growing their digital businesses transformation capabilities.”
Contour is a leading digital trade finance network that is building the global standard for trade by bringing together the world's banks, corporates, and ecosystem partners, onto a common, digital, and trusted network.
Meanwhile, Tinhvan Technologies is a leading IT corporation in Vietnam. The members of the group have amassed a solid track record in building IT solutions for clients in many different industries, including the banking, financial services, and insurance sector.