Kuwait Finance House (KFH) has launched a new service that allows customers to track the status of trade finance transactions such as documentary credit and letters of guarantee electronically and directly by receiving text messages on the customer's mobile phone and email for each stage of the transaction process.
KFH Group Chief Operations Officer, Abdulla Abu Alhous said that the new e-tracking service is part of KFH’s Digital Transformation strategy, adding that the Bank has made great strides in digitalizing its operations to enhance customer experience, increase productivity, improve performance, and decrease operational costs.
He added that the application of digital solutions and the automation of operational and banking processes for trade finance enhances customer satisfaction and contributes to accelerating business and achieving growth in the volume of documentary credit transactions and letters of guarantee.
“When submitting the request, KFH’s customer service agent will process the request electronically, while notifying the customer on each transaction phase details directly through SMS and email, which will save the time and effort while keeping the customer updated. The customer has the option to change the mobile number to track the request.” added Abu Alhous.
digital filing System
Abu Alhous mentioned that KFH is archiving all its trade financing transactions according to KFH’s digital filing system. Therefore, KFH has transformed all its paper-based transactions into digital filing process.
He also pointed out that this move reduces paper consumption, provides quick access to archived transactions, and enhances KFH's efforts towards digital transformation in line with the sustainability and environmental preservation strategy of the Bank.
An Integrated Package of Innovative Products
KFH offers an integrated package of innovative trade finance products including documentary credits at sight which provide customers with the highest levels of security upon importing merchandise from abroad, or even supplying them inside Kuwait. Further, KFH offers documentary credits by acceptance which is a deferred payment documentary credit according to which payment to the foreign supplier is deferred for a certain agreed period after dispatch of cargo, or receipt of bill of lading, in addition to documentary credit refinanced by Murabaha according to which the customer’s merchandise is imported on his account. Once the mechanize arrives, the customer can buy it from KFH for a known profit and settle its value on flexible instalments to suite each customer’s cash flows. Also, KFH provides export credit product which contributes to the activation of the foreign export movement and supporting local products including oil and gas. The export credit is delivered or endorsed in favor of the exporter in Kuwait upon instructions from the importer and his bank outside Kuwait. Thereafter, the customer receives his money upon completion of the specifications of the exported merchandise.
Regarding Letters of Guarantee, KFH issues different types of L/Gs to suite the nature of each project including initial guarantees (tenders), performance guarantees (final), maintenance contracts, initial payment, or letters of guarantees relating to financial guarantee for the labor of corporates, establishments, and individuals, as well as telephone installations or traveling abroad for individuals. The bank provides the documentary collection service and acts as a mediator who delivers to the customer documents relating to individuals or local Kuwaiti establishments as per the instructions of foreign parties.