Blockchain technology

Editorial staff

Bangchak and Bangkok Bank adopts Electronic L/C
Blockchain Technology, advancement for greater efficiency of Trade Finance Transactions

Bangchak Corporation Public Company Limited and Bangkok Bank digitized its trade finance process, integrating blockchain technology for letter of credit (L/C) transactions, recognizing the importance and benefits of adopting blockchain technology in operational enhancements since February 2023.

Phatpuree Chinkulkitnivat, senior executive vice president, Accounting and Finance, Bangchak Corporation Public Company Limited stated that Bangchak is committed to developing business innovation, adopting blockchain technology to enhance L/C transactions for Bangchak’s trade finance, an important step forward to improve the company’s operational efficiency.

The cooperation with Bangkok Bank in adopting blockchain technology in electronic L/C transactions via Contour, the blockchain-based global trade finance platform, is an advancement of Bangchak’s financial trade, enabling trading partners to review transactions clearly and transparently.

Moreover, blockchain-enabled L/C transaction significantly reduces the total time to open a L/C to less than three hour (previously three days), with information updated in real-time, reducing paper submission, and documentation and management costs compared to conventional form of L/C transactions.

Pipat Assamongkol, executive vice president, Bangkok Bank Public Company Limited revealed that the bank provides L/C on Blockchain, to facilitate and improve its trade finance services. The cooperation with Bangchak Corporation Public Company Limited is the first L/C on Blockchain service Bangkok Bank has provided to a company in the energy sector.

“This will successfully enhance the efficiency of Bangchak’s trade finance transactions, which is an integral part of Bangkok Bank’s role as a trusted partner and reliable close friend to provide digital solutions and adapt technology to create a better customer experience through technological transformation and build capabilities for a sustainable future for our customers.”