Three of the “big four” Australian banks launch a new company called Lygon. The task of this company will be to digitize bank guarantees by means blockchain technology.
Bank guarantees suppose an official contract between a debtor and a financial organization, which secures the debtor and the debt provider that the debt will be reimbursed on time.
The Australia and New Zealand Banking Group Limited, Commonwealth Bank of Australia and Westpac Banking Corporation together with two other partners — the Australian shopping center company Scentre Group and technology giant IBM launch this firm after a recent successful pilot.
The last of Australia’s big four banks, National Australia Bank, has tested new technology as well but delayed the launching due to worldwide pandemic
Based on Lygon chairman Nigel Dobson statement Lygon’s initial aim is the digitalization of commercial lease guarantees for time saving and operational costs decrease by simultaneously ensuring ensuring the safety of small businesses.
For the moment the bank guarantees are completely paper connected and make around several weeks to prepare and deliver. That is why the five companies have decided to support Lygon initiative to use IBM’s Hyperledger technology for bank guaranties digitalization and make insurance process the one-day one.