KBank introduces new letter of guarantee tool

Reported by: |Updated: August 8, 2017

Thailand’s largest bank Kasikorn Bank said it is launching a new enterprise letter of guarantee network based on IBM Blockchain. The new solution is designed to help simplify and expedite procedures for KBank’s letter of guarantee process, with the goal of improving the customer experience, strengthening security and reducing costs for clients and the bank. With a more digitized, streamlined and transparent process enabled by blockchain, KBank’s enterprise letter of guarantee solution is completely paperless, allowing banks and customers to do with the click of a button what previously required paperwork. The transparency provided by blockchain can help eliminate forgery and provide efficient service delivery. The solution is designed so that a letter of guarantee process that previously took up to several days is now significantly shortened.  KBank is Thailand’s largest issuer of letters of guarantee. Built on Hyperledger Fabric, a blockchain framework and one of the Hyperledger projects hosted by The Linux Foundation, the solution was tested in the Bank of Thailand’s regulatory sandbox and built to be able to scale up to meet an expected increase in letters of guarantee issuance through electronic channels.