Janakiraman says the immediate feedback from the Lygon pilot has been overwhelmingly positive.
“In my almost 20 years of experience in banking I have not had many cases where I have shown a product to a customer and the customer says, ‘Yes, I will have it”,” he said. “Every customer who we have taken the platform to says ‘yes, this is great’.”
Janakiraman said for customers, the process around traditional bank guarantees can sometimes be an unwieldly burden. Lygon solves that problem.
“Bank guarantees are a really simple product but it's a product which has not changed for a very long time,” Janakiraman said. “It is paper based and it's very manual.”
“It's a problem for our customers in terms of managing these instruments. And it creates operational inefficiencies for the banks, like ANZ, who issued the instruments.”
For Janakiraman, digitisation is the ultimate solution.
“And by digitisation we are not talking about taking a piece of paper converting that into a PDF document,” he said. “We are talking about completely reimagining guarantees.”
You can listen to the podcast above to find out more.
For me, the biggest winners of Lygon radically transforming the cost and speed of processing are firstly bank shareholders and secondly – and most importantly – customers, because they can get these instruments faster in a way that increases trust.
And when trust is increased in these processes the whole economy ultimately benefits.
Adam Grant is Head of Trade & Supply Chain at ANZ