On Monday, Tata Power announced a partnership with Contour, a prominent digital trade finance network based in Singapore, with the aim of enhancing the strength, clarity, and efficiency of its financial management procedures.
Contour’s network leverages the power of decentralized technology, specifically blockchain, to bring together a diverse group of organizations including companies and banks, as well as related ecosystem partners, onto a single, trusted network. The objective of this network is to facilitate the creation of a seamless and efficient digital trade finance workflow. The benefits of this approach include greater trust, transparency, and efficiency in the financial management process. This was stated in an official statement.
The integration of Tata Power and Contour’s systems will enable a reliable flow of data across the trade routes of the world and integrate disparate ecosystems that currently exist. This integration will provide a more cohesive and streamlined system for managing the financial aspects of the trade. The goal is to improve transparency, efficiency, and overall trust in the financial management process. This was explained in a statement.
Manual and paper-based financial procedures impede the growth of trade by introducing added complexity and incurring additional expenses.
According to a statement made by Sanjeev Churiwala, the Chief Finance Officer of Tata Power, the company’s partnership with Contour will lead to the establishment of a smooth trade finance process. The use of a robust blockchain-based solution will greatly enhance the efficiency of this process.
By joining Contour’s network, Tata Power is adopting a fully digital Letter of Credit (LC) settlement process. This move will benefit the company, as the use of a digital LC will allow for the submission of required documents in less than 24 hours, compared to the typical 510 days of a conventional process.
Carl Wegner, CEO at Contour, stated that by becoming a part of their network, which already comprises over 130 corporations, Tata Power will have the opportunity to extract more value and improve efficiency in trade through their digital solution.
