Currently, most cross-border corporate payments take a day or more to reach their destination, and take place only during business hours—resulting in delays, they have cut-off times or deadlines after which payments are processed the next business day, at the point of initiation the exchange rate can be unknown, as can transaction fees which may be deducted from the principal amount, they can be routed through many banks before they reach their destination causing delays and accruing fees; and unless a repeat payment, they are sent without certainty. The net result is that bank customers, mainly small and medium enterprises (SMEs) and corporates, experience delays, uncertainty and high costs in managing their cross-border payments.
Distributed ledger technology – commonly referred as Blockchain – has emerged as candidate for financial institutions to reform their businesses. The speed and cost of doing business using distributed ledger technology is expected to improve by simplifying back-office operations and lowering the need for human intervention.
With at times large amounts of funds that financial services companies have to deal with in cross border transactions, the question of security and efficiency becomes very crucial. Understanding of different jurisdictions and regulations will minimise some of the challenges faced by companies doing business in foreign countries.
DLT is designed to support networks, and to become established and grow, new networks require like-minded participants.
This high-level, interactive conference will feature high end panel discussions that will discuss new insights into standards and legislation as they are being set, and identify practical, commercial strategies that the financial industry can employ in this new world order of cross-border payments.