In a significant milestone for the fintech industry, both CargoX and Enigio, renowned providers of electronic trade document solutions, have collaborated to showcase the seamless exchange of original electronic trade documents. This groundbreaking achievement is a testament to the critical importance of interoperability in fintech and the advantages offered by the digitization of trade documents.
Bill of Lading Exchanged Between Two Systems
The specific document exchanged in this pioneering demonstration was a FIATA electronic bill of lading, a standard set by the International Federation of Freight Forwarders Associations. As part of the ICC UK’s Centre for Digital Trade Innovation (C4DTI) working group, dedicated to identifying and eliminating barriers to trade digitalization, Lloyds Bank played a pivotal role in outlining its interoperability requirements to fellow members Enigio and CargoX.
Lloyds Bank tasked these providers with the challenge of showcasing genuine system interoperability. After thorough evaluation of the proof of concept, Lloyds Bank is now confident in the potential of this innovative technology solution to facilitate the transition towards digital trade documentation in the UK. The success of this proof of concept is also expected to instil trust within the global trade community regarding the interoperability of electronic bill of lading (eBL) platforms.
This breakthrough achievement heralds the ability to seamlessly transfer original documents between two distinct tech solution providers without compromising the crucial chain of trust. This capability is paramount for the electronic handling, control, and transfer of document ownership. Ultimately, end-users stand to gain the most from this development, as they move closer to harnessing the simplified use of digital platforms for Electronic Trade Documents, courtesy of this successful proof of concept.
Nick Davies, Director of C4DTI, emphasized the significance of this early application of digital interoperation, showcasing how the benefits of digitalization can extend to the end-users of such systems. He noted that this will contribute to the development of a model for all similar systems in the future.
Patrik Zekkar, CEO of Enigio, (ibid) highlighted the importance of standardization in advancing interoperability, emphasizing that it opens the door for multiple solutions supported by ETDA (Electronic Transferable Document Association) to execute digitalized trade transactions by switching originals. This shift has the potential to establish an entirely new, sustainable, and collaborative business model in global trade.
The service is on track for full-scale development, promising to offer far-reaching and expedited results within the industry compared to standalone interoperability efforts. Peter Kern, VP Commercial of CargoX, emphasized that this achievement signifies true technical interoperability, bridging the gap between the public blockchain and Enigio’s hybrid dedicated blockchain. It will provide corporate and institutional users in global trade with heightened efficiency and security in electronic trade document exchange.
Gwynne Master, Managing Director, Lending & Working Capital, Lloyds Bank, (ibid) underscored the complexity of digitizing a Bill of Lading in the world of digital trade. This document passes through numerous parties during any given transaction, and the increasing variety of standalone platforms compounds the challenge. The technology solution offered by Enigio and CargoX is poised to make a substantial impact by enhancing the industry’s security, efficiency, and sustainability efforts.
In summary, this collaborative effort between CargoX, Enigio, and Lloyds Bank serves as a powerful testament to the vital role of interoperability in fintech. It also showcases how the digitization of trade documents can significantly enhance the efficiency, security, and sustainability of global trade, marking a pivotal moment in the ongoing digital transformation of the financial industry. This development can be seen within the context of the ITFA’s campaign to digitize negotiable Instruments.