Alfa-Bank is first among Russian banks to join the Contour trade finance network

Alfa-Bank has joined the Contour international network of trade finance, which interconnects trade companies and banks and ensures fast, reliable and transparent process of drafting, issuing and advising L/C. As a rule, the issuance of a letter of credit is a labour-intensive process involving a vast amount of paperwork and lasting for up to one week. Contour’s network reduces the processing time of L/C issuance by up to 90% – from 10 days to 24 hours.

“The accession to the Contour platform and launch of the pilot projects on the Russian market will fine-tune the strategy of development of products for transborder transactions. Customer requests become more complex, and we are always seeking to offer the best solutions,” Evgenia Fomina, head of the Alfa-Bank Lending Directorate, said.

“The significant interest in Contour’s development did not slow ahead of our launch in October. We worked with many interested parties keen to experience the benefits of streamlined processes, improved efficiency and an overall better ecosystem for trade finance to be conducted. Alfa Bank marks yet another step forward for Contour, being the first Russia-based bank on our network. Their involvement will continue to build an inclusive network that will improve trade across the globe,” Carl Wegner, CEO of Contour, said.

The Contour network is a digital eco-system of trusted parties, including applicants, issuing banks, nominated/confirming/advising banks, beneficiaries, and other participants in the L/C process. Contour was founded by major international banks, such as BNP Paribas, HSBC, ING and Standard Chartered, and aimed to optimise the L/C process, to cut operating costs, and to expedite settlements. Contour is based on the Corda blockchain platform of R3 Consortium, which Alfa-Bank joined in 2018. Contour allows bank customers to monitor the processing and modification of a trade finance transaction in the real-time mode by means of the blockchain technology.

Alfa-Bank is the largest universal privately owned bank in Russia. It has been leading in all banking business segments for 30 years. Alfa-Bank serves more than 850,000 corporate clients and 18.7 million retail customers.

Alfa-Bank is developing according to the phygital model, combining digital innovation with an effective physical presence network, which has 498 retail offices in Moscow and Russian regions, 900 cities with courier delivery and 27,900 of its own and partner ATMs. The bank is developing “A New Generation Branch Network” with recognition based on biometrics and geolocation without refusing live communication with customers.

Simultaneously, Alfa-Bank is the creator of the best banking application in Russia (according to Markswebb), which is regularly used by 80% of customers (rating on the App Store – 4.9 out of 5). Our values: the best customer experience, technological leadership, the best employees.

Alfa-Bank became the Bank of the Year in Russia 2019 according to The Banker magazine, Best Mortgage Bank 2019 by Global Finance magazine, and Best Bank for Premium Clients by Frank Premium Banking Award.

According to IFRS financial statements for the first half of 2020, the Alfa Banking Group, which comprises ABH Financial, AO «ALFA-BANK» as well as its subsidiary financial companies, had total assets of USD 54.7 billion, gross loans of USD 38.3 billion, total equity of USD 8.2 billion and net profit of USD 592 million.