HDBank joins Contour network to improve Letters of Credit issuance

May 06, 2020 | 07:39
HDBank has joined open trade finance network Contour to extend trade financing to more corporations. This addition to Contour’s blockchain-based network further strengthens its offering to the trade finance industry.
hdbank joins contour network to improve letters of credit issuance
HDBank is the first Vietnamese bank to join Contour's blockchain-based network for the issuance of Letters of Credit

HDBank is the latest financial institution to join Contour, becoming the first bank in Vietnam to be part of the company’s trade finance network. This offers an opportunity for Vietnamese corporates to take advantage of the online negotiation and streamlined management of Letters of Credit with counterparties in Asia, Europe, the Middle East, and the United States.

Built on R3’s Corda, Contour’s network is focused on overhauling the Letter of Credit (LC) issuance process. LCs are traditionally paper-based, time consuming to process, and costly to deal with. By digitising LCs on a blockchain network, the processing time and cost involved will be significantly reduced. With the current socio-economic climate, the need for further efficiency in the market has grown even more apparent.

Carl Wegner, CEO of Contour, said, “The focus of our network has always been to establish a neutral platform that all different types of banks and corporates can use for trade finance transactions. To fully unlock the potential of what enterprise blockchain can bring to trade finance, banks and corporates need to be able to collaborate and forge new connections. That is the ultimate aim of Contour, and it’s something we’re continuing to see as we welcome HDBank into the network.”

“We saw the potential for Contour to revolutionise how we issue LCs and knew it was an opportunity like no other," Phạm Quoc Thanh, CEO of HDBank, said. "From working with Carl and his team, we hope to change that, providing increased flexibility with LCs, streamlining the process, and providing funds to corporates in a far more efficient manner than ever before. In due course, we look forward to sharing news of transactions taking place on this network.”

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