Lygon Blockchain Platform has concluded its initial pilot that commenced last year regarding digital bank guarantees and has now introduced Australia’s system. Lygon is an amalgamation of heavyweights in the Australian finance scene, ANZ, Commonwealth Bank, Scentre Group, and Westpac; all backed up by American multinational technology company, IBM. The Australian financial bigwigs sought to collaborate on the project contributing their expertise to bring about the birth of Lygon.
The digital bank guarantee aims to rapidly increase the efficiency for securing a bank guarantee for companies looking to expand their business, perhaps. It is also to encourage entrepreneurship effects and activities. This ensures that the arduous and meticulous process involved, which could take up to a month, thereby curtailing and trudging the entire procedure, can eventually take a day.
A bank guarantee that is essential in business enables companies to operate and increase in stake by ensuring that they cover the risk if the borrower defaults on a loan. It enhances the purchase of goods (exporting is a common kind in this sphere) with the knowledge that the bank will cover the loss if the borrowing party fails to repay the loan.
For the pilot of the project, which commenced in July last year, almost 20 Australian companies were signed up for it. They were able to secure registration within approximately fifteen minutes. The pilot project also aided frequent bank guarantee procedures, for example, amendments and cancellations.
The process has been seen to convey a number of pros to the bank guarantee process. This includes the transformation from the antiquated paperwork involved, which makes the entire process less murky, more portable, and easier as a whole. It also makes the phases more lucid and transparent, which minimizes risks of unforeseen blips affecting it.
ANZ banking services lead and Lygon Chairperson Nigel Dobson stated that a gamut of improvements had been demonstrated across the entire process and helped significantly reduce the risk of fraudulence to the tune of billions of dollars increased the speed of execution.
Lygon hopes to expand its activities into international markets with a start in New Zealand, targeting cross-border guarantees frequently utilized in trading.