Australian banks and IBM to revolutionize obtaining bank guarantees

Businesses often struggle with obtaining and managing bank guarantees which often is required for retail property lease. Well, IBM is launching a new platform in collaboration with ANZ, Commonwealth Bank, Scentre Group and Westpac to solve this very issue.

The live pilot is named Lygon and utilizes the power of blockchain technology the way businesses manage and obtain bank guarantees. The solution is very important especially as it marks a significant new way blockchain is being applied to solve issues.

Bank guarantees have been traditionally issued manually and in paper format. The attempt at digitising the format will help protect the process by reducing the risk of fraud and will also decrease the errors. Further, digitising the process will also increase the speed of execution of the whole process.

The Lygon platform will be going live for eight weeks with live data. The platform will start its work by trying handling transactions for a test group initially for retail property leasing customers from 3 July.

IBM in its press release wrote: “In subsequent phases, Lygon plans to expand the range of digitised bank guarantees that it supports across other industries as well as offering its services to other customers in the retail property sector.”