KBank launches 100% electronic LG on blockchain

         KASIKORNBANK (KBank) introduces a full cycle of the electronic letter of guarantee (LG) service to accommodate its customers. The service includes LG issuance, renewal, and direct and immediate delivery to the beneficiaries, based on world-class security standards. With this development that reaffirms KBank’s top position in the LG market, KBank aims to increase the customers’ use of electronic channels for their LGs to 50 percent within 2020.

          Mr. Silawat Santivisat, KBank Senior Executive Vice President, said the K CONNECT-LG service of KBank has offered to its customers a 24/7 online service of LG issuance and renewal, and most recently, has introduced an online LG service on blockchain via BCI (Thailand) Co., Ltd. wherein a full cycle of LG service is available, including LG issuance, renewal, and direct and immediate LG delivery to the beneficiaries. Apart from greater convenience, the service helps cutting the costs of document management and data supervision, while streamlining the work processes, based on world-class security standards. In addition, the blockchain technology will add more efficiency to the LG processes and ensure greater security as forgery will be better prevented. LG issuance and verification can be completed more rapidly and LG status can be checked all the time.
         Mr. Silawat added that, initially, KBank’s electronic LG service on blockchain will be offered to three business conglomerates, namely SCG, GC Marketing Solutions and IRPC. Customers requiring LG originals will also receive the documents within only five hours, compared to the previous one-day period. With such a definitive timeline, customers can make their business plans more efficiently. The LG receipts can be printed out from the system for submission to the Revenue Department. Interesting customers may apply for the service at their RMs or ask for more details at the K-BIZ Contact Center, Tel. 02-8888822.
         In 2018, more than 500,000 LGs were issued via the Thai financial institution system, with the total value of THB1.35 trillion. KBank’s market share stands at 29 percent, which is on top of the market, consisting of 68 percent via branches and 32 percent via electronic channels. KBank aims to increase the service use via electronic channels to 50 percent by the end of 2020.