Switching to an end-to-end digital bank guarantee process is easy
trace:original bank guarantees
With trace:original, it is possible to fully digitise bank guarantees. trace:original is replicating today’s paper workflow through an end-to-end digitalisation process that is acceptable to all parties while keeping their current systems. There are no special requirements on any counterparties to the bank except that they need a computer and access to the internet. Not even a change of current laws and regulations is needed, provided they are technology-neutral.
How bank guarantees work today
There is no one way on how to issue digital bank guarantees. Bank guarantees are predominantly issued on paper or through SWIFT, if it is a bank-to-bank guarantee. Occasionally guarantees are also issued as electronically signed PDFs or on closed platforms. The multiple different processes applied for issuing guarantees create problems for all:
Drawbacks for all parties:
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Watch Walkthrough
Creating and managing digital original documents is easy with trace:original.
Follow along a guided walkthrough of the process from creation to signing, transfer and invalidation.
Applicant
- No visibility over lead time for issuance and delivery to beneficiary
- Not possible to agree over format
- No control over when the bank will be released from its undertaking impacting limit usage
- Using a third party platform is usually costly and requires special processing
- No wish to access or share data on a platform
Bank
- Paper is still default but impacting internal and external costs and lead times. Not possible to do STP
- A simple signed PDF as it is not an original
- Using a third party platform is usually costly and requires special processing
- Not possible to machine process
Beneficiary
- Paper is still default but impacting internal and external costs and lead times. Not possible to do STP
- A simple signed PDF may not be acceptable
- Using a third party platform is usually costly and requires special processing
- No wish to access or share data on a platform
What are the benefits of using trace:original?
With trace:original, all guarantees can be handled as today and in parallel with paper guarantees. A trace:original is also a fully digital information carrier that can be handled in any system and exchanges through any digital medium, like email, SWIFT etc.
Applicant
- Full visibility over lead times
- Can provide content digitally
- Schema agreed with beneficiary can be used at all times and regardless of bank
- No platform/onboarding required but can be integrated to existing platform/application
- Limits will be freed up faster with digital handling
Issuing bank
- Digital but same flexibility as with paper
- Instant issuance
- One digital solution for all beneficiaries everywhere
- Provides the beneficiary with a stronger and more robust asset than a normal PDF
- No platform/onboarding required but can be integrated to existing platform/application
- Accessed through any trade finance software provider
- Option of sending the original document to beneficiary or a verifiable copy
- If bank retains original possible to record all events in one document/record. No need to keep separate files or binders
Beneficiary
- Digital original guarantee
- Low cost and short lead times
- No dependency on bank nor platform
- Schema can be agreed with applicant
- Machine readable if schema is used
- Easy to store and access
- Original can be stored with issuing bank or platform with verifiable copy for easy processing
Accessible and interoperable
Only the creator of a trace:original document needs to be a customer of Enigio. Once created the document is fully portable and can be received and managed by anyone and anywere. It is packaged as a PDF that is both human- and machine readable with STP. The only requirements on anyone is a computer with internet connection.
Safe and secure
Traceability – Contains full audit trail of events within the document
Data ownership - no business or personal data shared or stored outside of the trace:original bank guarantee document.
Transparency – process visibility throughout the transaction cycle.
Storage – digitally stored by the owner and digital back-ups possible
Protection – only the one in possession has the right to add new content, transfer possession or invalidate, no-one can manipulate what has been written.
Authenticity – Document authenticity can be verified by anyone at any time
Evidence – Current or older version of document verifiable via its evidence stored on the block chain (Public Notary)
Sustainable
Using trace:original bank guarantees will contribute to fulfilling the following UN sustainable development goals:
SME growth and prosperity since:
- It will be easier to set up and execute a transaction
- Smaller amounts and shorter tenors are possible
- They can have access to ECA financing and guarantees
Innovation and infrastructure:
- As easy, affordable and interoperable as using paper
Reduce carbon emissions, fresh water and land use by reducing:
- Paper documents/production
- All physical transportation of the documents
Anyone can implement and start using trace:original for issuing of digital originals
It is only the one creating a digital original document that needs to be a customer of Enigio. Once a document has been created it is free to use and manage for anyone the same way as a paper document.
Three easy steps to start issuing digital guarantees:
- Define preferred set up, inhouse, cloud solution provided by Enigio or through your current software provider (trace:original is already available through serval software providers)
- Run as a standalone application with customer-branded GUI, or go through simple APIs and connect to your current system.
- Start issuing any type of digital original documents
If you would like to know more about what trace:original can do for you, especially when it comes to:
- Easily get an end-to-end digital bank guarantee process in place
- Reducing lead times to almost zero
- Reduce your cost by 2/3 compared to your paper process
do not hesitate to get in touch, book a meeting or demo.
Bank guarantees and trace:original – a perfect combination
Accessible and interoperable
Computer and internet only requirement
Digitally interoperable between anyone and any system
Readable by man and machine
Can contain a standard and/or a schema
Enables straight through processing (STP)
Safe and
Secure
Tamper proof and fraud safe
No sharing of business or personal data outside of document
Full audit trail
Cost and time
efficient
Minimal lead times
90% cost reduction
Sustainable
Reduce carbon emissions
Help SMEs growth
and prosperity
Promote infrastructure development
All the benefits
of bank guarantees
All the features of digital documents
trace:original
digital bank guarantees
Get started!
Schedule a one-on-one call to see how trace:original can help you achieve a fully digital end-to-end workflow with digital original documents, without any changes to your existing infrastructure.
In the call we will go through your specific needs and suggest a matching solution. We will also go through a live demo of trace:original, creating your first digital original document.
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