Paperless Revolution: Lloyds Bank Digitizes Guarantees and Standby Letters of Credit

(IN BRIEF) Lloyds Bank has introduced a revolutionary “Paperless Guarantee” initiative, enabling clients to request digital Direct Guarantees or Standby Letters of Credit for more efficient, secure, and environmentally friendly trade transactions. This initiative follows Lloyds Bank’s success in pioneering digital trade transactions under the UK’s Electronic Trade Documents Act and its investment in Enigio to expand digital documentation in trade. By going paperless, Lloyds Bank aims to reduce the carbon footprint associated with the 28.5 billion paper documents used in global trade annually. ABTA, the UK’s largest travel trade body, has already transitioned to this paperless format, potentially eliminating 3,500 paper documents per year.

(PRESS RELEASE) LONDON, 9-Oct-2023 — /EuropaWire/ — Lloyds Banking Group, a leading UK based financial services group, is proud to introduce a groundbreaking solution that empowers clients to request digital Direct Guarantees or Standby Letters of Credit, significantly enhancing the efficiency, safety, and security of their trade transactions.

The bank’s cutting-edge “Paperless Guarantee” initiative, designed to cater to businesses engaged in high-volume transactions that necessitate the issuance of bank guarantees, offers instantaneous delivery to recipients while reducing their environmental impact.

This marks the latest strategic investment by Lloyds Bank in the digitalization of trade, closely following its successful completion of the first digital trade transaction under the UK’s newly enacted Electronic Trade Documents Act (ETDA) on September 20th. Lloyds Bank also achieved the distinction of being the first in the UK to complete a transaction utilizing a digital promissory note purchase in August 2022. Additionally, the bank recently announced a €3 million investment in Enigio, aimed at expanding and accelerating the use of digital documentation in trade.

Trade finance is responsible for a staggering 28.5 billion paper documents circulating globally each year. Through the Paperless Guarantee initiative, Lloyds Bank is dedicated to further supporting clients seeking to secure new business and fulfill contractual obligations while simultaneously reducing time, costs, logistical complexities, and carbon emissions associated with paper-based transactions.

ABTA, the largest travel trade body representing UK travel agents, tour operators, and the broader travel industry, manages a substantial volume of guarantees (bonds) for its members. Collaborating with Lloyds Bank, ABTA has successfully transitioned to a paperless format and is actively working towards introducing this innovative process to other approved bond providers. Upon full implementation, this transition is estimated to eliminate the use of at least 3,500 paper documents annually, demonstrating a firm commitment to sustainability and efficiency.

Lloyds Bank is committed to driving positive change in the realm of trade finance, offering innovative solutions that benefit both clients and the environment.

Gwynne Master, Head of Lending, Trade & Working Capital at Lloyds Bank said: “By working closely with our clients and their buyers and their sellers, we have a deep understanding of the nuances and challenges of trading internationally. Our latest development, the Paperless Guarantee initiative, offers clients a solution to some of those challenges. It is much more efficient, saves time, and removes costs. Removing the need for the physical delivery of paper is the future of trade and we are proud to be supporting our clients to achieve his with our new initiative.” 

Rachel Jordan, Director of Membership and Financial Protection at ABTA, said: “We’re always looking for new ways to deliver sustainable, efficient, and cost-effective services to our members, so we’re really excited about our new paperless arrangement with Lloyds Bank. As one of ABTA’s approved bond providers, this initiative will not only speed up the bond renewal process for ABTA members who are Lloyds Bank clients, it will also result in operational efficiencies and cost savings.” 

Full information on Lloyds Bank’s Paperless Guarantee initiative

Ends

For more information, please contact Lloyds Banking Group’s press office:
• Lorna Gilmour: 0207 356 2374 / lorna.gilmour@lloydsbanking.com

Notes to editor:
(1) Undertakings being sent via another bank will continue to be issued on a paperless basis via the SWIFT network as they are today.
(2) Source: Gov.uk

About Lloyds Bank’s support for businesses
• Lloyds Bank provides comprehensive expert financial services for businesses of all sizes, from startups, SMEs, and mid-sized corporates all the way to large multinational corporations and financial institutions. It has over one million UK business customers.
• With a network of relationship teams across the UK, Lloyds Bank delivers the mix of local understanding and sector expertise necessary to provide long-term support to its clients.
• Lloyds Bank offers broad range of financial support beyond term lending and this spans, working capital and cash management services and solutions, international treasury and risk management services, trade import and export trade finance, structured and asset finance, securitisation facilities and capital market funding.

About ABTA
ABTA is a trade association for UK travel agents, tour operators and the wider travel industry. We’re the largest travel trade body, with over 3,900 travel brands in membership who have a combined pre-pandemic annual UK turnover of £40 billion. We work closely with our members to help raise and maintain standards and build a more sustainable travel industry, and provide travellers with advice, guidance and support.

Our members sign up to a code of conduct and commit to agreed service standards and fair trading. When you need clear travel information, and accurate and impartial advice relating to your trip, we’re here for you. We’ll help you understand your level of financial protection, and what to do next, in the unlikely event that an ABTA member goes out of business. So, whatever happens, when you book with an ABTA member, reliable advice comes as standard. This means that booking with our members brings peace of mind. Together with our members, we help you travel with confidence. www.abta.com

SOURCE: Lloyds Bank plc