Finastra launched StandbyX on October 19, offering US banks a cloud-enabled service for digitising standby letter of credit processing.
The product is designed for institutions with low to moderate transaction volumes, including regional and midsized banks using manual or partly manual processes.
StandbyX uses the standby letter of credit module within Finastra’s Trade Innovation platform, which the company says is trusted by more than 150 banks globally.
Its software-as-a-service deployment is intended to reduce integration and testing requirements without requiring banks to implement a full trade finance platform.
“Many U.S. banks have traditionally managed standby letters of credit through manual processes or workarounds,” said Vinay Mendonca, Head of Trade and Supply Chain Finance and Corporate Channels at Finastra.
Digital Trade Outlook’s View: A Narrow Product Aimed at the Banks Left Behind
Finastra is selling to the banks that never bought a full trade platform. Regional and midsized US lenders issue few standbys, but each one carries real value, and that book still runs on manual workarounds. A single module, delivered as a service, lets them digitise it without a platform project or a long integration. The banks that move first cut operational risk on a product where one error is expensive. Those that wait keep paying for manual handling that no longer has an excuse.
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Image: Finastra