KBank and IBM Develop Blockchain-Based Letter of Guarantee Service

      KBank and IBM Develop Blockchain-Based Letter of Guarantee Service

Digitized Letters of Guarantee can help reduce time and costs among enterprise
trading partners

PR Newswire

BANGKOK and ARMONK, N.Y., Aug. 8, 2017

BANGKOK and ARMONK, N.Y., Aug. 8, 2017 /PRNewswire/ -- IBM (NYSE: IBM) and
KASIKORNBANK Public Company Limited (KBank), one of Thailand's largest banks,
today announced the launch of a new enterprise Letter of Guarantee network
based on IBM Blockchain. The new solution is designed to help simplify and
expedite procedures for KBank's Letter of Guarantee process, with the goal of
improving the customer experience, strengthening security and reducing costs
for clients and the bank.

IBM Corporation logo. (PRNewsFoto/IBM Corporation) (PRNewsFoto/)

With a more digitized, streamlined and transparent process enabled by
blockchain, KBank's enterprise Letter of Guarantee solution is completely
paperless, allowing banks and customers to do with the click of a button what
previously required paperwork. The transparency provided by blockchain can
help eliminate forgery and provide efficient service delivery. The solution is
designed so that a Letter of Guarantee process that previously took up to
several days is now significantly shortened.

Letters of Guarantee issued via the commercial banking system in Thailand are
expected to reach over $40 billion, increasing by 8 percent in 2017. Of that
total, approximately $9 billion will be issued by KBank, which has the largest
share of the market at 25 percent. KBank is targeting an increase in Letter of
Guarantee issuance via electronic channel to 35 percent by the 2018 year-end,
5 percent of which will be processed via the blockchain.

"Blockchain technology is applied to create highly secure networks of document
filing and retrieval," said Pipit Aneaknithi, president of KBank. "As
Thailand's largest issuer of Letters of Guarantee, KBank is working with IBM
to implement this innovative technology to further define and articulate our
leadership in this market."

Built on Hyperledger Fabric, a blockchain framework and one of the Hyperledger
projects hosted by The Linux Foundation, the solution was tested in the Bank
of Thailand's regulatory sandbox and built to be able to scale up to meet an
expected increase in Letters of Guarantee issuance through electronic
channels. By offering a single, shared data structure, the solution is also
expected to help deliver new business opportunities with other banks in the
region.

"Blockchain reduces traditional transaction barriers and can help to improve
business processes in the financial services sector and beyond," said
Parnsiree Amatayakul, managing director of IBM Thailand. "As IBM continues to
support KBank's important initiatives in blockchain, the value this technology
can bring to the bank and its clients is becoming increasingly clear, and can
redefine the way businesses in the region operate and grow."

KBank provides banking services including personal and commercial banking,
international trade, and investment banking services to its customers
throughout Thailand. The bank has foreign branches in Los Angeles, Hong Kong,
Cayman Islands, and Shenzhen, and representative offices in Shanghai, Beijing,
and Kunming. KBank also partnered with other business partners to pilot the
use of Enterprise Letter of Guarantee on Blockchain service including
Metropolitan Electricity Authority, Provincial Electricity Authority, PTT
Global Chemical PLC, and PTT Polymer Marketing Company Limited.

About IBM
IBM is the leader in open-source blockchain solutions built for the
enterprise. As an early member of Hyperledger, an open source collaborative
effort created to advance cross-industry blockchain technologies, IBM is
dedicated to supporting the development of openly-governed blockchains. IBM
has worked with more than 400 clients across financial services, supply
chains, IoT, risk management, digital rights management and healthcare to
implement blockchain applications. For more information about IBM Blockchain,
visit www.ibm.com/blockchain.

Contact:
Holli Haswell
hhaswell@us.ibm.com 
720-396-5485

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SOURCE IBM

Website: http://www.ibm.com
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