Fri, Dec 18, 2020 – 12:43 PM
STANDARD Chartered (StanChart) has enabled access of banker’s guarantees, beginning with its client Nordic Flow Control, through the CamelONE Trade Finance portal.
CamelONE is Singapore’s first unified digital trade-finance portal backed by several banks, and a service provider for the country’s one-stop trade and logistics ecosystem, the Networked Trade Platform (NTP). (see amendment note)
Nordic Flow Control, a systems-integration solutions provider and a subsidiary of mainboard-listed Nordic Group, applied for a banker’s guarantee to fulfil its contractual obligations to supply marine-engineering systems to a China-based shipyard.
In the process, Nordic Flow Control submitted supporting documents digitally on CamelONE.
The application was then transmitted electronically via a straight-through process to StanChart, which had integrated its systems with the NTP via an application programming interface (API).
According to the bank, this digital process has eliminated processing errors and reduced the number of steps taken for a typical banker’s guarantee application by as much as 70 per cent.
It also enhanced transparency by enabling applicants to track their applications and transaction status on a real-time basis, said StanChart. Every applicant’s applications are also consolidated for ease of viewing.
StanChart is among the pioneer banks in the working group to support the development of the NTP initiative, which is spearheaded by authorities including the Monetary Authority of Singapore and the Singapore Customs. On the NTP, supply-chain stakeholders are digitally connected, and their data is captured at source for subsequent re-use.
“This trade finance transaction for Nordic Flow Control demonstrates that the right banking partner can accelerate digital integration, enabling companies to save costs, increase efficiency, and enhance security,” said Maisie Chong, StanChart’s head of trade for Asean and Singapore.
“We continue to engage with clients to connect to the NTP and tap on its value-added services to streamline their operations,” she added.
Nordic Group’s chief financial officer Chia Meng Ru said the new capability of digitally submitting financing applications, as well as the necessary documents, has simplified the company’s workflow “tremendously”.
“Now, Nordic Group is able to access, handle and process multiple trade finance applications seamlessly, improving our productivity and efficiency,” Ms Chia added.
StanChart has demonstrated the value of the CamelONE multi-bank portal and “the game-changing significance of API integration that enables straight-through processing in situ within banks’ existing systems and workflow environments”, according to Choo Wai Yee, director at the Networked Trade Platform Office.
GUUD Finance chief executive Desmond Loh noted that the CamelONE portal provides users with 24/7 access, updated status reports and simplier standardised forms.
Amendment note: An earlier version of this article incorrectly stated that StanChart issued an electronic banker’s guarantee on the NTP. It in fact enabled access of banker’s guarantees through the NTP’s CamelONE portal.