In cooperation with the Electricity Generating Authority of Thailand (EGAT) and Absolute Clean Energy PCL (ACE), Siam Commercial Bank (SCB) unveils technology and innovation potential as the first bank in Thailand ready to provide end-to-end digital service of letter of guarantee (LG) issuance.
As SCB emphasizes its vision of bank as a platform, clients can connect to the SCB Digital LG service right away without investing in system development on their own. The SCB Digital LG service is quick, secure, and completely paperless. In an early phase, the SCB Digital LG service will be introduced to power plants under ACE which is an EGAT business partner.
SCB is ready to promote its digital LG service in parallel with the LG process on Thailand’s central blockchain system among business sectors and supply-chain systems across industries to boost business competitiveness and efficiency in the digital world.
Talking about the cooperation, SCB Senior Executive Vice President and Chief Wholesale Banking Officer Wasin Saiyawan said that SCB, EGAT, and ACE have jointly developed the digital LG issuance process to boost business efficiency for EGAT, its business partners and suppliers across the supply chain.
The SCB Digital LG service development is now successful, as it can fully replace the paper-based LG issuance at every step, from LG application to approval results sent directly from SCB to EGAT, so business partners do not need to pick up documents at branches anymore.
The system is 100% paperless, reducing processing time from 3 days to only 3 hours. SCB is the first bank in Thailand offering such end-to-end digital LG service. An outstanding feature of the SCB Digital LG service is that clients can instantly connect to the system without a need of investment in system development on their own, so it is convenient for businesses in any size to boost their competitiveness.
Streamlined and convenient, the service helps businesses save costs and time with 24/7 real-time availability and international security standards.
Apart from the end-to-end digital LG service, SCB also provides LG issuance service on the Bank of Thailand’s (BOT) central blockchain system under BCI (Thailand) Co., Ltd. for 3 corporate clients, namely, SCG, GC Marketing Solutions, and IRPC.
The bank is ready to connect SCB Digital LG clients to the LG network on blockchain technology as soon as they want when BCI opens the service to users in general in the fourth quarter this year.
The Electricity Generating Authority of Thailand (EGAT) Deputy Governor, Finance and Accounting (CFO) Pattarakit Techasikarn said that the joint digital LG development with SCB has streamlined the old, complicated, and tedious paper-based LG issuance process with technology.
The end-to-end digital process will help boost competitiveness of EGAT business partners and suppliers in the supply chain. Power plants under Absolute Clean Energy PCL (ACE), which is an EGAT business partner, are the early adopters of the SCB Digital LG service.
The EGAT will further promote the service benefits among some other 1,000 business partners and suppliers in the supply chain networks for more convenience and efficiency in doing business with the EGAT, hoping to be a role model for other state enterprises to embrace digital technology to save costs and optimize economic resources to drive the digital economy in every sector.
Absolute Clean Energy PCL (ACE) Chief information Officer Teerawut Songmetta said that the company operates renewable power plants with a total capacity of some 200 MW. The company’s SET-listing is underway, and the EGAT is a key business partner.
ACE is delighted that SCB and the EGAT, seeing the importance of technology, have developed a streamlined LG platform for business partners’ convenience and cost saving. The company is pleased to use the SCB Digital LG service, which is in line with its policy to embrace technology for future growth.