Lloyds Bank has unveiled an innovative program that empowers its clients to request digital Direct Guarantees or Standby Letters of Credit, enhancing their trading efficiency, security, and sustainability.
This cutting-edge initiative, known as Lloyds Bank’s Paperless Guarantee, caters to businesses engaged in high-volume transactions requiring bank guarantees. Moreover, it facilitates immediate delivery to recipients while significantly reducing their environmental footprint.
As part of its commitment to advancing digital trade, Lloyds Bank has closely followed the inaugural digital trade transaction under the UK’s Electronic Trade Documents Act (ETDA), which became effective on September 20, 2023.
Notably, Lloyds Bank has already established its pioneering status in the realm of digital trade. In August 2022, it marked a historic milestone by executing the UK’s first transaction involving a digital promissory note purchase. Furthermore, the bank has recently committed €3 million in investment to Enigio, with the goal of expanding and accelerating the adoption of digital documentation in trade.
An estimated 28.5 billion pieces of paper are circulated in global trade finance annually. Through its Paperless Guarantee initiative, Lloyds Bank aspires to provide extensive support to clients seeking to secure new business opportunities, fulfil contractual obligations, streamline processes, reduce costs and logistical challenges, all while contributing to a reduction in carbon emissions by eliminating the need for paper couriers.