19 November 2020
Bangkok (19 November 2020) — Krungsri (Bank of Ayudhya PCL) reinforced its leadership in digital banking, with a greater achievement in customer service provision through continuous financial innovations development. The Bank has pioneered in adopting the Global Trade Finance Blockchain innovation in a letter of credit (L/C) transaction between leading companies in Thailand and Japan, the first of such transaction in Thailand and a breakthrough that takes international trade to the next level. The pilot transaction was conducted in the Bank’s own sandbox under the Bank of Thailand’s supervision.
Mr. Sayam Prasitsirigul, Krungsri Deputy Chief Information and Operation Officer, and Acting Head of Digital Banking and Innovation Division, stated that “Krungsri continues to focus on its mission of making life simple for its clients through the Bank’s operations and never cease to develop financial technology via digital platforms. Now Krungsri succeeded in introducing the Thai banking industry’s first blockchain-enabled L/C transaction between trading partners in Thailand and Japan, empowered by state-of-the-art innovation with international safety standards.”
“This pilot project of blockchain-based L/C service provided for trading partners operated in Thailand and Japan has been developed on Contour, a blockchain-based global trade finance platform. In this transaction, Krungsri acted as an issuing bank for an importer, a leading Japanese metal parts manufacturer based in Thailand, which has made a purchase from its trading partner which is a leading company in Japan. The cross-border blockchain-enabled L/C transaction was successfully completed within merely one hour,” added Mr. Sayam.
The achievement marked the advancement of Krungsri in applying cutting-edge technology for greater efficiency in customer service provision, as well as the flexibility in financial transactions, especially for the clientele engaging in international trade. Krungsri has previously held the lead in applying the blockchain technology to international money transfer transactions.
Ms. Yingluk Kongkasai, Krungsri Head of Transaction Banking Group, stated that “Krungsri takes pride in being entrusted by the clients with the pilot project of such innovation, marking the first in Thailand and a highly successful transaction. The innovation has transformed the conventional form of L/C transaction into a new one, while transcending the limitation regarding duration of international transactions and streamlining the process of document submission among concerned parties, in addition to enhancing safety, transparency, and traceability at every step. This service is advantageous for customers engaging in international trade while driving their business with swiftness, convenience, and ease. Given numerous challenges in today’s business arena, we believe delivering innovation that meets customer needs will certainly create great business opportunities for them.”
Mr. Carl Wegner, CEO of Contour, noted that “Bank of Ayudhya has facilitated the first Japan-linked transaction on the Contour network, and this is a significant milestone that shows just how fast Contour is continuing its expansion. Each new member showcases the wide-ranging potential of blockchain technology, bringing us closer to our mission of overhauling the archaic trade finance industry, benefiting corporates and banks of all sizes, and building the trusted network for global trade.”