Contour, the digital trade finance network, has partnered with MFEC, one of Thailand’s leading IT solutions providers as part of a shared vision to drive trade digitisation in the country. The partnership will enable MFEC to bring Contour’s digital trade solutions to Thai banks and corporates by integrating Contour’s blockchain-based network into the back-office systems of trade participants.
The announcement marks the latest addition to Contour’s growing number of integration partners, with Tinhvan Technologies – the Vietnamese IT consulting company – having joined its network only last month. By partnering with Contour, MFEC will significantly lower the barriers to entry for Thai banks and corporates seeking to digitise their trade finance operations.
Inefficient manual processes continue to generate operational barriers in the trade finance industry, often creating a major impediment to trade growth in emerging markets like Thailand. The process of acquiring LCs – one of the major methods of financing in Thailand – is often characterised by high administrative costs and long transaction times.
Contour’s decentralised network overcomes these issues by digitising Letter of Credit transactions. This simplifies the complex trade process by reducing paperwork and heightening connectivity between trade participants. Through this partnership, clients of MFEC will benefit from the shortened settlement of trade documents as well as frictionless communication with trading counterparties.
Carl Wegner, Chief Executive Officer at Contour, said: “Partnering with MFEC is a natural fit as we are both aiming to enhance the efficiency of the systems and processes banks and corporates rely upon to do business. Banks are often forced to deal with inefficient legacy platforms in the back office that prolong transaction times and make finance less accessible. Innovative digital solutions such as Contour can achieve vital reductions in time, cost and risk, and integration challenges should not stand in the way of adoption. We’re looking forward to working with MFEC as we continue to drive digitisation and grow our presence in Thailand.”
Arm Sivadith, Chief Transformation Officer at MFEC, said: “MFEC is delighted to be the integration partner of Contour as a part to strengthen Contour’s trade finance network operated on R3 Corda Enterprise Blockchain technology. The practice of adopting blockchain in trade finance is a means to elevate the enterprise and country’s advantages through efficiency enhancement, risk reduction, and transparency escalation to optimize the system. As of present, we already have a professional Corda team; therefore, by becoming Contour’s integration partner, it is our great opportunity to expand both enterprise and banking customers through adopting the Contour system and connecting with the internal processes to shorten operational barriers, heighten time and cost efficiency, and bring about even more of the transformation to Thai market.”