OCBC Bank has issued an electronic banker’s guarantee (eBG), making it the first lender to tap on Singapore Custom’s Electronic Guarantee Program.
OCBC Bank became the first bank to leverage Singapore Customs’ electronic Banker’s Guarantee program launched on Monday, issuing an electronic banker’s guarantee (eBG) to Singapore Customs on behalf of vCargo Cloud, an Infocomm Technology solution and service provider that performs customs declaration services for forwarders and shippers.
It has taken some time for trade finance to be digitalized, but the momentum has picked up over the last few years. Already, close to half of our trade transacting customers who were previously sent in paper trade applications are now doing so via our internet banking portal Velocity@ocbc,» said Melvyn Low, Head, Global Transaction Banking, OCBC Bank in a media statement.
«And now, with this inaugural eBG, we have seen the end to end digitalization of the Banker’s Guarantee process, which is a milestone for the trade industry’s digital transformation,» added Low. OCBC Bank said its API connectivity with the Networked Trade Platform (NTP) has enabled the bank to electronically transmit details of its customers’ eBG to Singapore Customs.
As a result, the time taken from an application – which can be done via the bank’s business online banking platform Velocity@ocbc – to delivery of the Banker’s Guarantee to Singapore Customs, has gone from 7 working days to 1 working day. Businesses can benefit from this more efficient process as it mitigates the risk and costs that result from delays and disruptions to their imports into Singapore.