Hari says the immediate feedback from the Lygon pilot has been overwhelmingly positive.
“In my almost 20 years of experience in banking I have not had many cases where I have shown a product to a customer and the customer says, ‘Yes, I will have it”,” he says. “Every customer who we have taken the platform to says ‘yes, this is great’.”
For customers, the process around traditional bank guarantees can sometimes be an unwieldy burden. Lygon solves that problem.
“Bank guarantees are a really simple product but it's a product which has not changed for a very long time,” Hari says. “It is paper based and it's very manual.”
“It's a problem for our customers in terms of managing these instruments. And it creates operational inefficiencies for the banks, like ANZ, who issued the instruments.”
For us, digitisation is the ultimate solution.
“And by digitisation we are not talking about taking a piece of paper converting that into a PDF document,” Hari says. “We are talking about completely reimagining guarantees.”
For me, the biggest winners of Lygon radically transforming the cost and speed of processing are firstly bank shareholders and secondly – and most importantly – customers, because they can get these instruments faster in a way that increases trust.
And when trust is increased in these processes the whole economy ultimately benefits.
Adam Grant is Head of Trade and Supply Chain at ANZ
This article was originally published on ANZ’s Institutional website