The problem today
The decentralized paper-based process
In the course of business many companies by nature will issue numerous guarantees to their customers through banks and sureties. Over time they find themselves accumulating a significant number of outstanding guarantees issued by different guarantors for different beneficiaries.
In the end participants find themselves with a messy distribution of outstanding guarantees physically held across a wide range of counterparts.
And this is where the problem begins.
At heart, the problem today is that the issuance and storage of guarantees is spread across multiple participants while the guarantee related process is manual and paper based.
This creates a number of challenges for all parties involved including:
- Reduced transparency
- Labour-intensive reconciliation & reporting
- Delays in processing of guarantee issuance & post issuance requests
- Manual, time consuming and non-standard process
- Cumbersome manual release process for the discharging of guarantees
- Vulnerability to tampering and fraud
The above challenges impose a number of costs on participants including courier fees, resource costs, unnecessary provisions and issuance fees paid by the applicant.
Transparency through Digital Guarantees
Guarantee Vault is a solution to digitize the existing paper-based process through the central issuance of digital guarantees that are requested, secured and stored electronically.
Through this innovation of digital guarantees, Guarantee Vault brings issuance through a common digital channel allowing market participants real-time updates, certainty, transparency, convenience and predictability in contrast to the challenges inherent in the process today.
Save costs, improve efficiency, reduce risks
Guarantee Vault allows market participants to save costs, improve efficiency, reduce operational risks and more.
Delivering its service via its suite of REST APIs, Guarantee Vault allows market participants the possibility to seamlessly connect and benefit via their existing platforms, portals or other in-house systems.