With a strategic equity investment, Santander CIB has become a stakeholder in Komgo. Both firms intend to create synergies between Komgo's technology and corporate customer base and Santander CIB's worldwide trade financing reach.
The invested amount was not revealed. Santander is now a shareholder in Komgo, along with ABN Amro, BNP Paribas, Citi, Consensys, Crédit Agricole, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG, Natixis, Rabobank, SGS, Shell, SMBC, Société Générale, and Total.
Partnering with Komgo allows Santander CIB to automate communications, optimise end-to-end procedures, and decrease operational risks.Komgo will broaden its trade financing offering after having acquired Global Trade Corporation (GTC) in 2022. Santander CIB will deliver expertise and tailor-made Trade & Working Capital solutions for Komgo's client portfolios in Europe and the Americas, while also using Komgo's technology to increase client-to-bank communication and deploy novel trade financing and commodities solutions.
Financial institutions have increasingly partnered with Komgo to use its solutions in recent years. These collaborations aim to increase commodities trading efficiency, transparency, and security while lowering the costs and dangers associated with traditional paper-based methods.
Financial institutions recognise blockchain technology's potential for changing the commodities trade financing business. They receive access to a scalable blockchain infrastructure that supports the digitisation of trade papers such as letters of credit, invoices, and certificates of origin by collaborating with Komgo. This digitisation removes the need for time-consuming manual operations, cuts paperwork, and speeds up transaction times. As a consequence, financial institutions may deliver faster and more effective trade financing solutions to their clients, increasing customer satisfaction and obtaining a competitive advantage in the market.Because blockchain technology offers immutable and decentralized record-keeping, all transaction data are safely kept and easily auditable. Financial institutions may use this transparency to reduce fraud risks, prevent money laundering, and improve regulatory compliance.
Santander CIB's trade facilitation services are a crucial component in trade financing. To limit risks for both importers and exporters, the bank offers a variety of instruments such as letters of credit, guarantees, and documentary collections. These instruments offer assurance and payment security by assuring that items are delivered and payments are made in accordance with the terms agreed upon. Santander CIB's trade facilitation experience assists firms in navigating international trade rules and mitigating possible problems, resulting in smoother and more efficient trade transactions.
Santander Corporate & Investment Banking also provides supply chain finance solutions. These solutions optimise working capital by providing finance choices to clients' supply chain vendors. Santander CIB assists businesses in improving cash flow, lowering operational expenses, and strengthening connections with their suppliers by leveraging its strong supplier relationships and utilising financing approaches. Santander CIB's supply chain financing solutions are intended to improve efficiency and collaboration within supply chains, benefiting both buyers and suppliers.
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