Bank of Ayudhya (BAY) has become the first domestic financial institution to use blockchain technology for real-time transactions of petroleum trade between IRPC Plc and its foreign business partners.
BAY has recently launched real-time international money transfer service through its Krungsri Blockchain Interledger for oil trading transactions between IRPC and its overseas trading partners.
With this blockchain technology, money transfers will be completed within seconds instead of one to three business days, as happened previously.
The service was successfully used in the past week for a fund transfer for a petrochemical transaction between IRPC and its Laotian business partner Bouasavanh Power Sole Co Ltd.
Noriaki Goto, the president and chief executive of BAY, believes its blockchain technology will drive the Thai business sector towards faster expansion.
"This breakthrough marks a significant change in the financial landscape. It will be a catalyst to utilise financial innovations in delivering cross-border funds transfer service to other business partners," he said.
Mr Goto said the bank will use more than 2,000 networks of Mitsubishi UFJ Financial Group, BAY's major shareholder, in more than 50 countries to expand its business and serve customers.
IRPC president Sukrit Surabotsopon said the new money transfer will enhance competitiveness, support business growth and help the company through better logistics management.
"More importantly, faster international money transfers help our customer, which is a leading oil trader in Laos, to better manage risk from foreign exchange volatility while improving their cost management, speeding up the delivery period and increasing business the advantages," said Mr Sukrit.
"IRPC is conducting a feasibility study of our IRPC 4.0 project under which we aim to use digital innovations to increase the efficiencies of the organisation for faster business processes, including production, marketing and procurement."
The project is expected to be implemented in 2018 as part of the strategy to drive IRPC's business in tandem with the Thailand 4.0 development plan, said Mr Sukrit.
