Digital Guarantees
Paperless and friction-free bank guarantee processing
Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Solution
Quartz™ - The Smart Ledgers™
Quartz™: Creating collaborative ecosystems using resilient technology
Highlights
- Manual, paper-based bank guarantee management processes are prone to fraud risks and potential losses and lack tracking and reporting for all parties.
- The Digital Bank Guarantees platform from Quartz, built to support the SaaS model, helps banks digitally transform the end-to-end lifecycle of guarantees, including issuance, modification, termination, and invocation.
- The hyper-automation using blockchain technology makes the bank guarantee management process simpler, quicker, and more secure, providing a single source of truth across multiple parties.
On this article
ABSTRACT
Automated bank guarantee processing for faster issuance, fewer errors, higher efficiencies, and happier customers.
With DLT powered hyper-automation, the Digital Guarantees from Quartz connects all stakeholders and provides a digitized lifecycle for Bank Guarantees. It helps banks and other financial institutions to get instant updates on the status of each digital guarantee and ensure non-repudiation through an immutable audit trail of transactions on DLT, thus, moving away from paper-based processes and achieving greater operational efficiencies.
Challenge
Despite banks going digital in different areas, bank guarantee management processes continue to remain paper-based, leading to the lack of standardization and operational inefficiencies in the lifecycle. The process involves significant manual intervention and lack of access to information on a real-time basis to the stakeholders involved. Furthermore, the risk of documents being forged exposes banks to the risk of frauds and potential losses.
The DLT-based Digital Guarantees platform from Quartz is an example of digital transformation refining the end customer experience across ecosystems. Multiple issuers, banks, insurers, government bodies, SMEs, and individuals will benefit from access to a SaaS-based platform that provides data privacy, immutability, traceability, and real-time processing.
Solution
The Digital Guarantees platform from Quartz, digitalizes the end-to-end bank guarantee management process. The platform connects individuals, corporates, and the government to guarantee issuers (banks and other financial institutions) alongside a marketplace where issuers and beneficiaries can manage their guarantee portfolios, including issuance, extension, and cancellation.
Issuers can enable their customers to benefit from this mutualized solution; aggregators can offer their customers a managed platform for their guarantees, and corporates can directly connect it with their internal systems. The hyper-automation provided by the solution not only boosts transaction processing and efficiencies but also establishes provenance and non-repudiation through immutable ledgers.
Benefits
- Reduces delays associated with paper-based guarantee processing.
- Eliminates fraud risks and mitigates the possible loss of physical documents.
- Facilitates immutability and auditability across the transaction life cycle.
- Enables transparency to all the guarantee issuers and beneficiaries through real-time updates.
Rolling out new technology, such as Quartz Blockchain, to digitize bank guarantees will help our customers with simpler, easier, transparent, and optimized processes. With this solution, we will be extending our client base to include corporates, SMEs, and individuals who will soon be able to access their digital bank guarantees across its life cycle through APIs and an intuitive web portal.