CGI and National Bank of Canada Align for Pilot Project
The collaboration will produce a project created to simplify the negotiation process for restrictive agreements that banks use to secure transactions, as opposed to the e-mail system currently being used which often causes delays in the process along with some errors.
CGI’s financial trading platform is integrated from blockchain-based tech acquired via a startup company called Skechain. It will allow bank customers to start trading finances electronically through initiating or closing negotiations for credit letters as well as guarantees on standby, completely through smart contracts.
No More Delays
Such a blockchain-powered system based on an end-to-end principle should improve on the time of processing transactions and also decrease the possibility of risks, according to the companies. Templates are being used that are previously agreed upon through the bank, along with a digital distributed ledger system for negotiations; therefore, the system can automate the needed logistics to coordinate the production of any credit or guarantee letters on standby.
The National Bank's VP, managing payment- and cash-related solutions, Patrice Roy, explained how this endeavor represents a huge chance for leveraging blockchain technology and simplifying the currently complex process of negotiating standby credit and guarantee letters while maintaining transparency and security.