Big Asian Bank Executive: Going Paperless Will Save the $9 Trillion Finance Sector from Forgeries
Going paperless is seemingly becoming an attractive option. Paper records are often used to carry out activities in banks from lending to signifying ownership. However, forgers are now utilizing it as a means to forge the symbols that make a document legal.
According to Ng Chuey Peng, managing director at Singapore’s Oversea-Chinese Banking Corp Ltd, the $9 trillion global trade finance sector needs to become digital in a bid to tackle fraud. Ng’s observation was published on May 5 according to a Bloomberg article.
Forge documents have been the ban of banks and thanks to this illegality, banks have lost millions. Establishments such as Citigroup, Standard Chartered and the Australia & New Zealand Banking Group have been affected by these forgeries.
However, Ng who happens to be the head of global commodities finance at the second largest bank by assets in Singapore criticizes the industry’s heavy reliance on paper receipts. She believes that digitization will enable the industry to counter these forgery attempts. Ng declares that in forge papers 55 so real that “The color, the watermark is exactly like the original.”
Agreeing with Ng's view, Simon Collins, the co-founder of TradeCloud Services Pte, an online trading explains that the documents commonly used in commodities trading can be seen as “paper bridges” creating links that make it susceptible to forgeries.
He explained that a $9 trln business such as the finance industry can utilize digitization to curtail such risks. Ng revealed that OCBC is working on a technology that could help to reduce the need for paper records in the commodities trade. While we do not yet know when the industry would go paperless, NG reveals that the industry will likely utilize the “Blockchain, Forcefield, Komgo or Vakt.
As it is, a lot of companies are utilising these methods already. Forcefield, a blockchain based solution had several international metal companies joining in to utilise its transparent solution. Companies are already utilising IBM based blockchain an Volkswagen joined the Bandwagon in May. These are but few companies seeking ways to go paperless.
Do you think the can go paperless by 2020? Kindly share your thoughts with us in the comment section.