Commerzbank has set up an innovation lab in Dortmund to investigate the use of technologies such as DLT in trade finance.
The German bank's lab is based at the Fraunhofer Institute for Material Flow and Logistics IML, extending a partnership that has been in place for the last year.
The centre will work on developing new payment and finance ideas for the trade finance business based on things such as DLT, smart contracts and the Internet of Things, and made ready for the market. At the same time, both institutions say they will work to establish a general framework and standards for the digitalisation of international supply chain management and related financing tools.
Nikolaus Giesbert, divisional board member, fixed income, currencies and commodities, and trade finance and cash management, Commerzbank, says: "Since the collaboration with Fraunhofer IML began, potential practical applications for the trade finance business have been identified and prioritised in consultation with corporate clients of the Bank.
"Processes along physical supply chains can be linked much more closely to the financial supply chain using new technologies. In many parts of the supply chain, processes currently done manually are able to be automated and performed more efficiently. The Enterprise Lab Center provides exactly the right framework for us to step up our collaboration, which has been a success to date."