"The problem is with paper,” Lygon CEO Justin Amos said. “That’s what we’re fixing.”
The first use of blockchain technology for a commercial banking product in Australia, Lygon is a solution aimed at simplifying the process around bank Guarantees – condensing up to four weeks of work into a single day.
Pen-and-paper based for centuries, Lygon is bringing bank Guarantees into the digital era, and after a successful pilot focussed on retail property leases is now set for broader application. This is good news on multiple fronts, with a slew of productivity benefits and a lower environmental impact, according to Amos.
“From our analysis, there’s over 80,000 courier deliveries or postal deliveries in Australia supporting the totality of bank Guarantee [activity] in any one year,” he said.
Digitisation removes this almost entirely, slashing risks around handling errors and even fraud. Time saved not chasing down physical Guarantees is a big factor for productivity, Amos said.
“We think [businesses could enjoy] six million trading days saved by going digital, and that’s a conservative estimate,” he said.
Additionally, digitisation could save around four million pieces of paper a year compared to existing processes, Amos said, a positive development in a world increasingly focused on suitability.
“We shouldn’t underestimate the environment impact of using paper,” he said.