PermataBank Adopts Blockchain Technology to Facilitate Trade Finance Transactions

PermataBank launches its trade finance service to handle transactions using blockchain technology. This step has re-established PermataBank as a leading bank that responds to customer needs through digitizing its various services. Not only that, the use of blockchain technology is PermataBank's support for Bank Indonesia's efforts in navigating the national payment system that utilizes technological innovation optimally and digitally transforms end-to-end.

Blockchain technology uses the concept of a distributed ledger which allows data to be distributed at every connected point in an efficient and accountable manner, so that all parties in the blockchain can exchange data in real time.

The use of blockchain for trade finance will create an easier, more efficient, and secure global trade transaction process, including for the needs of issuing letters of credit (L/C).

Darwin Wibowo, Director of Wholesale Banking at PermataBank said, “PermataBank always strives to bring simple, fast, and reliable innovations to its customers. The application of blockchain technology in trade finance transactions is PermataBank's effort to respond to fast-growing digital transformation as well as our commitment to assisting businesses and corporations in accelerating their business development. We are also proud to be working with Contour, the world's leading provider of blockchain technology in the inaugural launch of blockchain for the banking sector in Indonesia."

The implementation of blockchain for trade is a breath of fresh air in the process of trade transactions, both domestic trade and international trade (export-import). Conventional trade finance transactions are often considered complicated, inefficient, and tend to take a long time.

This condition is exacerbated by the COVID-19 pandemic which has an impact on area and activity restrictions, making various procedures in transactions also hampered.

“Utilization of blockchain in trade will save transaction time, minimize the risk of fraud, and simplify complex processes that have been a challenge in conventional trading. In addition, blockchain technology will expand the range of PermataBank services and at the same time provide convenience for Trade Finance customers to be able to transact without having to come to PermataBank branches.” added Darwin.

PermataBank decided to cooperate with Contour due to its track record as a leading international blockchain-based technology platform provider and has become a partner of various leading banks in the world.

Contour's Chief Executive Officer, Carl Wegner, said, “We are delighted to welcome PermataBank to our network and facilitate its first digital Trade Finance transaction. Global trade is very important to the Indonesian economy, but banks and Trade Finance businesses generally follow a manual process which is a major barrier to trade growth. This transaction is a benchmark in our mission to make trading more accessible to all communities around the world.”

The collaboration between PermataBank and Contour will optimize trade transactions to be easier and more efficient, as well as help business and corporate customers to find trusted business partners and validated their credibility.