Australian banks partner with IBM to eliminate the paper documentation based guarantee procedure. They will now be using the Blockchain network to validate the agreements. Banks will now shift to computerized and automated sharing system for verification and recording data.
Australia’s top-ranking banks are collaborating with IBM and the Scentre Group for the adoption of Blockchain technology for daily functionality. The retail chain giant Scentre has taken up the onus of testing the Blockchain adaptability for digitalizing bank guarantees. All companies are exploring automated options avoiding paper-based bank guarantees to reduce the processing time and mitigating the risk of fraud.
Westpac Banking Corp, Commonwealth Bank of Australia and Australia and New Zealand Banking Group, has agreed that a new Blockchain platform is being developed and tested in an eight-week program. This live pilot for Lygon focuses on retail property leasing that will eventually be beneficial across sectors reducing the risk of fraud against billion dollars guarantees given by the banks. Lygon is a new smart digital platform generated by the magic of Blockchain technology to transform the way businesses record and manage high amount bank guarantees. Lygon is a compressive industry solution that cannot be implemented by individual participants. The founders of this project have conducted extensive market research to develop a deep understanding of industry processes navigating to a live platform aimed at enhancing customer benefit by addressing feedbacks and issues related to bank guarantee systems.
Historically, bank guarantees were issued on paper, manually. Digitizing this complex process mitigates the risk of fraud for all parties involved, decreasing the probability of errors. Lygon is expected to multiply the speed of execution by potentially reducing the time taken to issue a bank guarantee from a month to 24 hours. This novel digital process will increase security and transparency by maintaining privacy. Retailers across the continent, ranging from international brands to single store owners need bank guarantees to secure lease over the tenancy. The Lygon project will involve retail outlets of Scentre Group’s stores. Post the success of this pilot project, Lygon intends to offer accessibility to all issuers, beneficiaries, applicants to support smooth sanctioning process. This platform will be operated by Lygon 1B Pty Ltd, a company jointly owned by the five founding members. Banks are in total support of this digital leap purporting to usher the use of Blockchain technology for processing retail finance across the globe.
In the banking sector, approximately 300 lenders across the globe, including top 4 Australian lenders, National Australia Bank, Westpac, and Commonwealth have heavily invested in Blockchain developers LLC as they brainstorm on how to conclude processing bottlenecks. Though the project is experimental, it portrays immense optimism towards clients and banks accepting Blockchain for creating a decentralized record-keeping technique for organized hosting payments in cryptocurrency.