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
StandbyX packages a specific trade capability for banks whose transaction volumes do not require a full platform. The source identifies the underlying issue clearly: standby letter of credit volumes can be relatively low while the value of individual instruments remains significant.