Lloyds Bank and ABTA provide paperless bonds

Lloyds Bank has developed a new solution where clients can request digital Direct Guarantees or Standby Letters of Credit, helping them to trade more efficiently, safely and securely.

The bank’s Paperless Guarantee initiative, created to support businesses who have a high volume of transactions requiring bank guarantees to be issued, enables instant delivery to recipients while reducing their carbon footprint.

ABTA, the largest travel trade body for UK travel agents, tour operators and the wider travel industry, manages a high volume of guarantees (bonds) for its members. ABTA has worked with Lloyds Bank to switch to a paperless format and is aiming to introduce this new process to other approved bond providers. When the process is complete, it estimates the change could eliminate the use of at least 3,500 pieces of paper each year. 

Rachel Jordan, director of membership and financial protection at ABTA (pictured), said: “We’re always looking for new ways to deliver sustainable, efficient and cost-effective services to our members, so we’re really excited about our new paperless arrangement with Lloyds Bank. As one of ABTA’s approved bond providers, this initiative will not only speed up the bond renewal process for ABTA members who are Lloyds Bank clients, it will also result in operational efficiencies and cost savings.” 

Gwynne Master, head of lending, trade & working capital at Lloyds Bank, said: “By working closely with our clients and their buyers and their sellers, we have a deep understanding of the nuances and challenges of trading internationally. Our latest development, the Paperless Guarantee initiative, offers clients a solution to some of those challenges. It is much more efficient, saves time and removes costs. Removing the need for the physical delivery of paper is the future of trade and we are proud to be supporting our clients to achieve his with our new initiative.”