The big banks are all on the same side for this one and businesses looking for a bank guarantee will reap the benefits.
👉 Background: Last year, three of Australia's big four banks as well as shopping centre company Scentre Group and tech company IBM came together to create Lygon, a blockchain startup ⛓.
👉 What happened: Lygon just banked $12.7 million in funding, which will be used to fuel a hiring spree, fund research and development work, and push into new industries.
👉 What else: Apparently the company received more capital than it actually needed thanks to SUPER high demand for its core product: a platform that helps simplify the banking guarantee process.
💡Just like we can have guarantors for loans, businesses can be backed up too - by the banks. A bank guarantee is an unconditional undertaking by a bank to pay a customer's debts if they can't 🤝.
💡The teeny tiny (read: HUGE) problem with bank guarantees is that they rely on a slow, paper-based system. About four tonnes of paper and 80,000 couriers/postal deliveries per year, according to Lygon 📑.
💡Taking bank guarantees digital is a huge deal in the biz world. And it looks like investors know it.
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