Credit Bank of Moscow and Snow Queen have completed trial letter of credit transaction on international digital trade finance network Contour powered by blockchain technology
Credit Bank of Moscow (CBM) and “Snezhnaya Koroleva” (Snow Queen) have successfully completed a trial letter of credit (LC) transaction on Contour’s digital trade finance network powered by blockchain technology.
CBM offers a wide variety of LC options and is developing this instrument according to its clients’ needs. Traditionally, issuing an LC is a time-consuming process with a huge amount of paperwork. For companies choosing a partner-bank for LC payments, they must consider not only the cost of the transactions, but also the effectiveness and quality of the technology it uses. CBM has experienced increasing demand for faster transactions, reduced operational costs and minimization of paperwork. In response, CBM is actively digitalizing its processes and systems in the most significant sectors, including trade finance.
Built on R3’s Corda blockchain platform, Contour digitizes paper-based trade finance processes, including the creation, exchange, approval and issuance of Letters of Credit (LCs). Working together with its network of banks, corporates and partners, it is building a new global standard for trade finance by simplifying and removing barriers in the trade ecosystem, enabling all parties to collaborate on a common network.
Natalia Bakhova, Head of Trade Finance at CBM, comments: “We already offer digital LCs to our clients within Russia through Кontur.Diadoc where we issue, advise and discount LCs. We see the growing demand for digital solutions, therefore, we are actively exploring innovative technology in this field. Using Contour’s network will provide trade transaction participants a number of advantages, among which are increased data security, reduced operational costs and paperwork, faster LC issuance and document presentation processes. With Contour, all parties of a trade transaction will be able to control its status digitally via blockchain technology. At the same time as launching full-fledged LC transactions on the platform it is necessary to legitimize the usage of digital documents in Russia”.
Carl Wegner, CEO of Contour, comments: “We are delighted CBM and Snow Queen chose Contour’s digital network to make this transaction possible. We’re finally seeing the trade finance industry embrace digitisation and reap the benefits of improved connectivity and efficiency in LC presentation. With continued involvement from businesses such as CBM and Snow Queen, we can change international trade for the better.”
The trial transaction which was carried out jointly with Snow Queen helps CBM to define the development strategy of the documentary products more precisely and offer the optimum solutions for new customers’ requests. Trade finance is one of the strategic areas of the bank. According to a study by the British magazine "Euromoney", CBM ranks first in the Trade Finance Best Service Survey 2021 category.
About Snow Queen:
“Snezhnaya Koroleva” (Snow Queen) is Russia’s largest chain of multi-brand fashion stores. Today, the company operates more than 120 stores in Russia’s two capitals and other major regional cities. For more than 22 years of its existence, the company has been developing a prestige Department Store offering its clients all kinds of men’s and women’s clothing and accessories of high quality - all in one store. Snow Queen has established itself as an expert in leather and fur outerwear trade, as a guarantee of quality and a specialist in offering stylist services.
Contour is a leading digital trade finance network that is building the global standard for trade by bringing together the world's banks, corporates and ecosystem partners, onto a common, digital, and trusted network. Powered by innovation, trust and collaboration, Contour uses decentralised technology to offer seamless integration with market-leading digital document systems and other digital networks, enabling the instant flow of trusted data across the world’s trade routes and current fragmented ecosystems. Contour has been named as a Leader in Trade for Digitalisation at the GTR Awards 2021.