The problem today

Grey Smoke

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.

Services throughout the guarantee life-cycle
The result is a messy distribution of guarantees across a wide range of counterparts
Grey Smoke
Services throughout the guarantee life-cycle
The result is a messy distribution of guarantees across a wide range of counterparts

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.

Our solution

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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.

crystal ball
Services throughout the guarantee life-cycle
Guarantee Vault facilitates the central issuance and storage of digital guarantees therebyremoving the paper and fully digitizing the process.

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.

Benefits

Applicants, Guarantors & Beneficiaries

  • Standardization of incoming / outbound requests (single source)
  • Resource savings through digitization efficiencies
  • Better oversight and control of outstanding guarantee portfolio
  • Significantly reduced reconciliation effort between all parties
  • Secure records resistant to tampering, fraud
  • Digital process that facilitates remote working (covid-19 impact)

Applicants & Guarantors

  • Seamless integration of issuance, request and release processe
  • Elimination of courier fees

Applicants

  • Access all guarantors through the one platform (both banks & sureties)
  • Fast, efficient guarantee release
  • Faster repayment (where contingent on guarantee receipt)
  • Elimination of commission fees (from outstanding guarantees)

Guarantors

  • Increased level of service to clients
  • Digital Guarantees as a new product offering
  • Reduced time & effort on queries from clients
  • Guarantee Vault as a new channel for origination

Beneficiaries

  • Faster receipt of issued guarantees
  • Eliminates the problem of misplaced or lost guarantees