Alfa-Bank is the first Russian bank to join Contour, the international blockchain trade finance platform. The digital network founded by major financial organizations including HSBC, BNP Paribas, ING and Standard Chartered aims to optimize the processes involved in issuing Letters of Credit (LCs) and improve trade across the globe.
Issuing paper-based LCs is a long, costly, labor-intensive process that leaves significant room for human error and fraud. Alfa-Bank predicts Contour’s mechanism will reduce LC issuance processing time by 90% (from 10 days to 24 hours), significantly cutting operating costs. Furthermore, Contour allows bank customers to monitor the processing of and modifications to the trade’s transaction in real time, ensuring transparency in the process and enhancing customers’ trust.
Contour leverages R3’s Corda blockchain technology. Alpha-Bank has been involved with R3 since 2018 and is also a member of the Corda-based Marco Polo trade finance platform.
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