Bangchak and Bangkok Bank Adopts Electronic L/C

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.

Wednesday 8 March 2023 14:39

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.