But it is good to think about the future. It depends on how we approach this future though because prospecting about your future can enrich your life.
Komgo: An Overview
Komgo is a digital network that aims to bring the global commodity trade finance network together for better and safer interactions among companies.
The main goal is to bring greater benefits within the commodity finance global value chain by increasing the efficiency and effectiveness in the use of resources.
We met Mehdi Bechiri, Operations Lead at Komgo SA, to discover more about this innovative solution in Trade Finance.
Increasing privacy and reducing costs
To achieve this, Komgo has developed and deployed software that provides a network for seamless digital peer-to-peer interaction (data exchanges among participants on Komgo’s platform) for the processing of transactions and their flow with secured data exchanges capabilities. This ensures the privacy of clients with the benefits of reducing the time and cost associated with transactional data management.
Some of Komgo’s key strengths include:
- Promoting openness yet ensuring privacy
- Being customer and user-centred
- Allowing business to business collaboration
- Ensuring clarity and focus on a specific niche as an organization (commodity Trade Finance)
- Promoting team spirit and support
Origins and directions
Komgo is an independent organization, incorporated in Geneva, Switzerland since August 2018. Despite many participants in their network, Komgo makes decisions independently of its network participants.
The governance and leadership of Komgo is the sole responsibility of an executive team headed by the Chief Executive Officer Souleïma Baddi. Her excellent market knowledge, expertise, and experience was key from the conception to deployment phase and remains so now that Komgo is a global organization.
With fifteen shareholders and counting, Komgo currently has 25 percent of the digitalization of global commodities finance flows (digital value chain), which includes organizations like banks, traders, and inspection companies.
The Komgo software platform does two main things:
- It provides a live-network with blockchain validatory features that enable the same status (exact copies) of documents and data that are exchangeable in a private and secure manner.
- Komgo software also helps to digitalize trade and commodities documents like letters of credit, credit insurance, and receivables discounting thereby speeding up the operational processes in commodity trade finance and minimizes human error.
This Quorum software is built on a standard ethereum protocol layer to ensure the security it offers to the global commodity finance value chain.
Opportunities for growth
The kind of transactions and data that the Komgo network manages will increase drastically as the network of collaborations grows, delivering bespoke solutions through its customer-centric philosophy to bring maximum benefit to its users. A broad range of solutions has already been developed to meet the specific needs for the processing of various commodity trade finance solutions
Komgo has also formed a genuinely forward-looking partnership relationship with Vakt to achieve more through collaboration between their teams for both efficiency and security, and realize the seamless interoperability of their networks.
This collaborative capability thus extends the products and services goal of both organizations by increasing the net efficiency of the overall value chain.
The Komgo System also offers a unique source of security for documentation in the network. As a result, in the Komgo environment, you only need to maintain one repository of documents and that single document is shared on “a need to know” basis with any other user of the network without actually storing any of the data in the Komgo environment. In essence, the Komgo network is fully decentralized and does not have a local database. Instead, each user keeps its own documentation and only uses the network should there be a need to share information securely.
The auditability and immutability of the data within the Komgo blockchain system reduce operational risks (especially fraud risk) which is one of the biggest challenges within the commodity financing value chain.
Solutions for unique needs
Looking forward, the Komgo platform will continue to collaborate with like-minded organizations to bring about change towards a more secure, robust and efficient operational platform; one that seeks to provide customer-specific solutions for their unique needs.
In conclusion, Komgo is “a live commodity trade finance digitalization tool” built on Quorum with ethereum protocol. It promises to improve profit margins, and improved traceability of trade flows within the commodity trade finance sector.
We would like to thank Mehdi Bechiri for the time he spent speaking to GBN about this exciting project.