Digital Bank Guarantee
Lygon is a platform that digitises and standardises the paperwork and processes behind bank guarantees. Jointly created by Westpac, ANZ, Commonwealth Bank, Scentre Group and IBM, it makes the bank guarantee process simpler, quicker and more secure.
Quick
The Lygon platform digitises the previously manual, paper-based bank guarantee process. Lygon trims the processing time down to just a few days to issue a bank guarantee rather than weeks – the potential for errors is reduced.
Visible
The use of blockchain technology, providing a single source of truth across multiple parties, increases transparency across the process and allows for tracking, reporting and validation.
Secure
Our commitment to security means you can feel confident that your data, information and transactions are secure. Blockchain technology provides a secure channel, only visible to the participants on the guarantee.
How does it work?
Bank guarantees are often used to secure contracts, commonly as part of a retail property lease, as an alternative to a deposit or bond, where the bank provides an unconditional undertaking to pay one party in the event of another’s default.
For Westpac Institutional Bank (WIB) customers with a credit approved limit, the process for obtaining and managing bank guarantees can be digitised through Lygon where all parties to the bank guarantee are onboarded to Lygon. The platform also lets you:
- Request the issue of a new digital bank guarantee
- Request amendments to an existing digital bank guarantee
- Request an existing digital bank guarantee be cancelled
- Provide consent for a digital bank guarantee to be issued, amended or cancelled (where required)
- View all digital bank guarantees to which you are a party, along with their status
"Guarantees are often lost or misplaced, and there's the risk of fraud, audit trails and reporting can be clunky, and there is a lack of standardisation. With Lygon, we found a way to address most of those issues."
Alastair Welsh, Managing Director, Corporate and Institutional Banking
Things you should know
©Westpac Institutional Bank – A division of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714 (“Westpac”). This information is factual information only and is correct as at 22 July 2022. It is not intended to be, and should not be interpreted as, a recommendation or opinion about the financial products identified. This product is available only to wholesale clients within the meaning of s761G of the Corporations Act 2001. You should consider whether or not this product is appropriate for you. Terms and conditions apply.
Westpac has a substantial shareholding in the provider of the Lygon Arc. platform (Lygon 1B Pty Ltd ABN 90 633 568 411). Westpac currently makes the product available to customers of Westpac Institutional Bank only.