Military Commercial JSB (MB) becomes the first Vietnamese commercial bank to join the Contour network to provide blockchain-enabled letter-to-credit (L/C) services for import-export corporates.
|MB's blockchain-enabled L/C services allow a secure process of delivering L/C services, from issuance to document presentation, to take place on a single unified platform |
Blockchain helps to improve the efficiency of numerous professions and is predicted to be a game-changer for commercial banks in resolving bottlenecks in international commerce, particularly trade finance activities.
Following the trial period, MB officially became the first Vietnamese commercial bank to join the Contour Network and offer blockchain-enabled L/C services to corporations. MB's L/C services allow a secure process of delivering L/C services, from issuance to document presentation, to take place on a single unified platform. The service also represents another step towards digitalising its banking products and services, particularly for corporates specialising in import-export, while enhancing customers’ experience.
The most significant advantage of adopting blockchain technologies over the traditional L/C execution is that all parties involved in the transaction can access its status in real-time. This not only ensures accuracy, completeness, and transparency of information among stakeholders but also markedly reduces the processing time and saves cost for the entire process. Besides this, blockchain-enabled transactions safeguard corporations from various frauds in international trades – a critical change in the implementation of L/C, the most important payment service in trade finance.
Carl Wegner, CEO of Contour, said that the company is delighted to welcome MB to its ever-growing network of banks committed to exploring the benefits of digital trade.
“Vietnam represents an important player in Southeast Asia’s network of trade hubs, and many actors here are leading the digitalisation of this sector. With MB in our network, we can bring the benefits of paperless trade to more participants across the globe, achieving smoother and more secure ways of transacting,” Wegner stressed.
In addition to blockchain-enabled L/C services, MB also offers many tailor-made products and services for corporates with import-export activities on BIZ MBBank, including international online payments for imports and online foreign exchange for exporters. Businesses may benefit from paperless, convenient, and customer-centric transactions with these products.
By Hien Nguyen