Lloyd Bank and Komgo Partner
Amazing news are coming, as far yesterday, on the September 25th, Lloyds Bank established the partnership with Komgo, previously known as a firm, working with distributed ledger technology. This particular information was provided by FStech, a British news outlet, enlighting the most recent events in the field. So let’s take a closer look at why Lloyds Bank and Komgo partner.
What Is It All For
Lloyds Bank had recently reported that they are about to use Komgo’s platform for streamlining the commercial banking division. However, Lloyds Bank is one of 4 clearing banks in the United Kingdom also known as “Big Four”. It’s official representatives also state that this cooperation with Komgo will simplify commercial operations and lead to the substential burst of trade as well as banking division. Also they point out that Komgo’s DLT platform is used not just to digitize the commercial process. This partnering will enable businesses of all kinds to exchange commercial data and documents. It can be letters of credit or KYC management, as well as receivables discounting. So the whole process will be executed in a digital way, much more secure than before. However, decentralization of all the operations is also an advantage.
Why Lloyds Bank chose Komgo to partner
Komgo platform is based on blockchain technology, allowing to ease and optimize trading, provide secure transactions. It also helps to prevent frauds and increase total efficiency of trade. This platform, however, is supported by more than 10 commodities and bank investors. Oil giant Shell is among them, as well as widely known ING and Amro.
Lloyds Bank say that international trading is a time–consuming process. Sometimes it can take up to 100 days to close transactions connected with one single commodity. Clear enough, the ways of simplifying and making the trades faster is critically needed. It was also mentioned that the commodity trades involve a lot of paperwork and substantial risks which are to be avoided. However, for commodity clients good trade speed is a must. That is why Lloyds Bank and Komgo partner.
In the official statement of managing director for Lloyds Bank Gwynne Master another point was mentioned. Lloyds Bank and Blockchain Platform Partner are about to perform better trading conditions for their corporate customers as well by streamlining and digitizing the process.
A Huge Change Or a One-Day Trend?
This news is important and might be the very beginning of a new era. More and more big banks and leading figures in international trade pay close attention to crypto. Among them UBS and Credit Suisse should be mentioned. The main question is if this close attention should be considered as a beam of a new era and future transformations. It can also be just a following up a new trend with no consequences.