The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterMon 10 Jul 17

Bank Guarantees Now Digitised After Successful Blockchain Trial

iStock-521690360_620x380

The bank guarantee process used for commercial property leasing has been successfully digitised, ironing-out current inefficiencies in the current bank guarantee process.

ANZ and Westpac teamed with IBM and shopping centre operator Scentre Group to trial Distributed Ledger Technology (DLT) in order to eliminate the need for current paper-based bank guarantee documents.

Their result was a new single source of digital information with reduced potential for fraud and increased efficiency.

In addition to eliminating the need for physical document management, the trial also addressed other inefficiencies in the current bank guarantee process, including the challenges in tracking and reporting of a guarantee’s status through multiple changes.

This forms part of a broader plan to build a shared solution with the rest of the industry, and to invite other organisations to participate in a larger pilot.

Scentre Group Chief Financial Officer Mark Bloom said an update of the decades-old process for issuing, tracking and claiming on guarantees was long overdue.

“With approximately 11,500 retailers across Australia and New Zealand, who use guarantees to support rental obligations, manual tracking of guarantees has been an extremely cumbersome and labour intensive process," he said.

ANZ Digital Banking General Manager Nigel Dobson said they were keen to avoid the hype surrounding blockchain and distributed ledger technologies, and instead focused on practical and deliverable use cases.

“This proof of concept demonstrates how we can collaborate with our partners to develop a digital solution for customers, which also has the potential for industry-wide adoption.”

The motivation was centred around a need to remove the cost of fraud, error and operational risk that was expected to continue as long as bank guarantees remained paper-based and manually issued.

This blockchain trial used Distributed Ledger Technology (DLT) powered by Hyperledger Fabric V1.0 – a blockchain framework and one of the Hyperledger projects hosted by The Linux Foundation.

The partners involved in the trial also released a white paper detailing how the solution worked and how it could be used in other situations that rely on bank guarantees.

OtherRetailOfficeAustraliaFinanceTechnologyReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Korean coliving hero
Exclusive

Disconnection by Design: Why ‘Untech’ is the Next Big Amenity

Clare Burnett
5 Min
Global Shifts Redraw the Map for Australia’s Office Market
Exclusive

Office Eyes Slowdown as New Stock Supply Becomes a Trickle

Vanessa Croll
7 Min
Salta MD Sam Tarascio
Exclusive

Why Salta Won’t Break Ground on $400m Pipeline

Leon Della Bosca
7 Min
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
View All >
Placemaking

Arup to Lead Brisbane Games Victoria Park Masterplan

Lindsay Saunders
Billbergia Chatswood Twin Towers
Development

Billbergia, Metrics Chase 46 Storeys in $400m Towers Uplift

Vanessa Croll
Infrastructure

Tasmanian Premier Shrugs off Damning Stadium Report

Lindsay Saunders
The state planning commission says the scheme would “diminish the economic welfare” of the island and drive-up tax...
LATEST
Placemaking

Arup to Lead Brisbane Games Victoria Park Masterplan

Lindsay Saunders
3 Min
Billbergia Chatswood Twin Towers
Development

Billbergia, Metrics Chase 46 Storeys in $400m Towers Uplift

Vanessa Croll
3 Min
Infrastructure

Tasmanian Premier Shrugs off Damning Stadium Report

Lindsay Saunders
3 Min
Korean coliving hero
Exclusive

Disconnection by Design: Why ‘Untech’ is the Next Big Amenity

Clare Burnett
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/bank-guarantees-now-digitised-successful-blockchain-trial