German Industrial Product Manufacturer, Börger GmbH, completes innovation milestone on Marco Polo with financial partners Sparkasse Westmünsterland and S-Servicepartner
Global industrial product manufacturer, Börger GmbH, recently achieved an innovation milestone, having completed their first blockchain-enabled trade finance pilot on Marco Polo, a distributed ledger technology (DLT) powered platform.
Börger GmbH, with presence in more than 65 countries, completed a series of successful pilot transactions with two of Germany’s long-standing financial players, Sparkasse Westmünsterland and S-Servicepartner.
The collaboration focused on Marco Polo’s Payment Commitment module which is an irrevocable payment commitment (IPC) that is available exclusively on the network. The underlying domestic transaction involved commercial pumps sold by Börger GmbH to a client. The Euro-based transaction was financed by Sparkasse Westmünsterland with all process steps stored on the Corda blockchain.
An innovative trade finance instrument used to secure payments against the successful matching of trade data is Payment Commitment, an irrevocable and independent undertaking of an obligor (buyer/importer) or its bank to pay at maturity to a recipient (seller/exporter) bank on the Marco Polo Network. The successful matching of digital data is facilitated by a process which is transparent and visible to all participants at every stage of the trade finance transaction, resulting in enhanced risk mitigation and security.
Roger Trepmann, Head of Finance & Administration of Börger GmbH, and Thomas Terwei, Head of International Business of Sparkasse Westmünsterland:
“The collaboration has shown us practitioners that Marco Polo’s Payment Commitment is on an excellent track. It is crystallising that both internationally active companies and financial institutions will receive new and very attractive solutions for meeting their needs in cross-border activities with Marco Polo. This is especially true from the time when logisticians, insurance companies, customs authorities and chambers of commerce and perhaps even consulates are integrated into the processes.”
Birte Reich, Team Leader of Documentary Business and Export Financing, and Marion Poser, Process Manager of S-Servicepartner-Group:
“To ensure the future market acceptance of these new products like Payment Commitment, it is vital to constantly consider and meet the changing needs of both – the financial institutions and the corporates. We are delighted and thankful for the readiness of Sparkasse Westmünsterland and Börger GmbH to collaborate with us and encouraged by their positive feedback.
As one of the early adopters and member of the Marco Polo Network, it is invigorating to be part of this process and witness the evolution and growth of the network to date.”
Authari Megele, Director – Sales and Account Management at Marco Polo said:
“Through automated and digital trade finance transactions among sellers, buyers and financial institutions, the Marco Polo Network brings to all its members the transparency and operational efficiency required for global financial supply chains. The network enables faster, automated and more secure transaction for corporates and financial institutions, resulting in reduced costs, and risks.”
Source: Börger GmbH