Technology Industry News

Scentre Group partners with Lygon and banks to transform the bank guarantee process

The new technology aims to digitalise the bank guarantee process. Photo: Westfield Miranda

ANZ, Commonwealth Bank, IBM, Scentre Group and Westpac have jointly launched a live pilot for Lygon, a new digital platform using blockchain technology to transform the way businesses obtain and manage bank guarantees that are often required as part of a retail property lease.

The launch marks a significant milestone in the global development of blockchain solutions. Lygon represents an industry solution that the participants could not have individually implemented. The founding members have brought together their deep understanding of industry processes to navigate from proof of concept to a live platform that will directly benefit customers and address their feedback on the way in which bank guarantees have been issued to date.

Thousands of retailers around Australia – from single store operators to national and international brands – need bank guarantees from their banks to secure a lease over a retail tenancy. Historically, bank guarantees have been issued manually and on paper. Digitising this process reduces the risk of fraud for all parties involved, decreases the potential for errors and significantly increases the speed of execution.

The new process could reduce manual paperwork immensely

Initial findings suggest that the Lygon platform has the potential to reduce the time it takes to issue a bank guarantee from up to a month to on or around the same day. Lygon has the potential to benefit many sectors and to reduce the risk of fraud across billions of dollars guaranteed by the banks.

This new, digital process increases transparency and security through the use of blockchain technology while maintaining the privacy required in such a business process.

The pilot will run for eight weeks with live data and transactions for a test group of retail property leasing customers from the 3 July. In subsequent phases, Lygon plans to expand the range of digitised bank guarantees that it supports across other industries as well as offering its services to other customers in the retail property sector.

The pilot will involve lease holders with retail outlets in some of Scentre Group’s Westfield living centres across Australia. After the pilot, Lygon intends to offer access to the platform to all issuers, applicants, and beneficiaries and support broader use cases over time.

The Lygon platform will be operated by Lygon 1B Pty Ltd, a company jointly owned by the five founding members.

About the author

Shopping Centre News

Shopping Centre News (SCN) is in the ‘information business’, and is perceived as such by its readers. Daily industry news makes shoppingcentrenews.com.au a must-visit as part of the morning routine for those who want to keep right across the latest retail developments and events, while SCN's premium magazine is the leading publication for the shopping centre industry in Australia and New Zealand.

Known as the ‘industry bible’ SCN is printed five times a year with fascinating, in-depth features and important critical analysis written by known industry insiders as well as the popular ‘Guns’ reports, which ranks Australian shopping centre performances. Shopping Centre News is the only publication in the world that features centre statistics on Turnover, Turnover per square metre and Specialty Shop turnover per square metre for every major centre in Australia.

Add Comment

Click here to post a comment

Notice: Undefined index: comment_cookie_gdpr in /opt/amaze/srv/live/app/www/wp-content/themes/herald/core/template-functions.php on line 28

Notice: Trying to access array offset on value of type null in /opt/amaze/srv/live/app/www/wp-content/themes/herald/core/template-functions.php on line 28

Advertisement

Advertisement