Kasikorn Bank or KBank, the leading commercial bank in Thailand, has introduced a distributed ledger platform for Letters of Guarantee (LGs), enabling the electronic issuance, renewal, and delivery of LGs to its clients.
The online service was introduced with the cooperation of the Blockchain Community Initiative Co. Ltd. (Thailand), supported by the Bank of Thailand. According to KBank’s press release, the commercial bank aims to process 50% of its LG issuances via the digital platform by 2020.
Silawat Santivisat, Senior Executive Vice President of KBank, said the bank’s K CONNECT-LG service now lets customers access LG issuances and renewal services around the clock.
According to him, the bank’s electronic LG service is initially being offered to three Thai companies: SCG, GC Marketing Solutions, and IRPC.
The KBank SEVP disclosed that customers requiring LG originals will be able to receive the documents within five hours, whereas the process used to take one day. The faster turnaround times are reportedly made possible through digitization.
“Apart from greater convenience, the service helps cutting the costs of document management and data supervision, while streamlining the work processes, based on world-class security standards,” the press release stated, citing Silawat.
“In addition, the blockchain technology will add more efficiency to the LG processes and ensure greater security as forgery will be better prevented. LG issuance and verification can be completed more rapidly and LG status can be checked all the time.”
This new service is expected to allow bank customers to do business more efficiently. Moreover, the LG receipts can be printed out directly from the system for submission to the Revenue Department.
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