Prime Bank has become the first Bangladeshi Bank to execute an interbank blockchain Letter of Credit transaction improving speed, efficiency and cost-effectiveness of the transaction, said a press release.
The transaction was conducted with HSBC, which the first bank in Bangladesh to conclude cross border trade transaction through the network.
The pilot transaction was completed through Contour, the global trade finance blockchain network, whereby an inland LC was opened by Prime Bank on behalf of AnantaGroup for import of raw materials for the ready-made garments industry from Tamishna Group, a customer of HSBC Bangladesh.
The end-to-end process of pre-negotiation and drafting of LCs by Importer and Beneficiary, approval, issuance of LCs and presentation of documents were all concluded digitally through Contour’snetwork.
The transaction required no paperwork or need to physically visit banks.
All parties involved in the process — buyers, banks and beneficiaries –logged into Contour’s network to carry out any activity.
‘As Bangladesh is fast becoming a leading trading country, Prime Bank as a leading trade finance bank in Bangladesh, is exploring ways to get most benefits of digitisation in trade frontiers. We are elated to offer our client blockchain LC transaction with support from HSBC and Contour that is real-time, hassle-free, paperless and at the same time low-cost,’ said Prime Bank managing director and CEO (current charge) Faisal Rahman.
‘Today’s success will inspire us and banks in Bangladesh to adopt automation in trade finance to provide seamless services to their valued clients,’ he added.