Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Toronto Stock Exchange  >  Bank of Montreal    BMO   CA0636711016

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Commerzbank, other banks join UBS and IBM trade finance blockchain

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/04/2017 | 04:41pm CEST
A woman passes by the IBM offices in New York

Commerzbank AG (>> Commerzbank), Bank of Montreal (>> Bank of Montreal), Erste Group Bank AG (>> Erste Group Bank AG) and CaixaBank SA (>> CaixaBank) have joined an initiative launched by UBS Group AG (>> UBS Group) and IBM Corp (>> International Business Machines Corporation) aimed at building blockchain-based technology to support trade finance transactions.

Commerzbank AG (>> Commerzbank), Bank of Montreal (>> Bank of Montreal), Erste Group Bank AG (>> Erste Group Bank AG) and CaixaBank SA (>> CaixaBank) have joined an initiative launched by UBS Group AG (>> UBS Group) and IBM Corp (>> International Business Machines Corporation) aimed at building blockchain-based technology to support trade finance transactions.

The platform called Batavia would help banks and their clients automate the trade finance process, which remains highly manual and paper-based, the participating companies said on Wednesday.

In trade finance, banks provide funding and other services to importers and exporters to facilitate commerce.

Among other things Batavia will allow parties to track a transaction from when a shipment leaves a port to when it reaches its destination.

Blockchain, which was first developed to power cryptocurrency bitcoin, is a shared ledger of data that is maintained by computers, rather than a central authority. Over the past few years, banks have been investing millions of dollars in adapting the technology to run some of their data heavy and complex processes.

Banks have been collaborating and forming consortia to develop the technology.

Trade finance is considered a good use for the technology because it involves numerous parties such as the institutions financing the transactions, buyers, sellers, transporters and inspectors.

Currently each party maintains its own records, which can lead to mistakes and delays. The new platform aims to provide all participants with a shared record, reducing errors and driving more business.

"Trade finance is a perfect use case because there are so many participants in a trade ecosystem especially when you talk of global trade," Marie Wieck, a general manager at IBM Blockchain, said in an interview. "Digitizing and creating a level of trust is a perfect accelerator (for business)."

A pilot is expected to take place with the new banks in the first quarter of 2018, Wieck said. The project was first announced in 2016.

The platform would also use so-called smart contracts, or computer programs on the blockchain that automatically enforce the terms of an agreement. For example the platform would release payments for a transaction along each step of the trade process.

While the finance industry continues to experiment with blockchain, it is still in its early days and some caution that it may take several years before it leads to any benefits.

IBM is also working with Nestle SA (>> Nestlé), Unilever Plc (>> Unilever), Wal-Mart Stores Inc (>> Wal-Mart Stores) and other large food and retail companies on a separate blockchain project to track food supply chains.

(Reporting by Anna Irrera; Editing by Lisa Shumaker)

By Anna Irrera

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BANK OF MONTREAL
10/20 BMO Asset Management Inc. Announces Cash Distributions for BMO Exchange Trade..
10/19 BANK OF MONTREAL : Rotman Lifetime Achievement Award Presented to BMO's William ..
10/17 BANK OF MONTREAL : Drunk driver found asleep at the wheel, search for bank robbe..
10/17 CGI, Its Bank Partners Achieve Ground-Breaking Interoperability Between CGI T..
10/16 BANK OF MONTREAL : Alliance Data Top-Five Client Bank of Montreal Renews With Lo..
10/13 S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices
10/12 Bank of Montreal, CaixaBank, Commerzbank, Erste Group, IBM and UBS Collaborat..
10/11 BANK OF MONTREAL : BMO Asset Management Inc. Launches First ETF in Canada to Pro..
10/10 BANK OF MONTREAL : BMO Named One of the Most Diverse & Inclusive Companies in th..
10/06 S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices
More news
News from SeekingAlpha
10/17 My Bet? Canadian Banks
10/12 IFRS9 : What Banks shareholders should know
10/03 RESOURCE SECTOR DIGEST : Production Delays Are Very Common In The Mining Sector!
09/27 JPMorgan Is Setting Up For Another Move Higher
09/27 BANK OF AMERICA : Why You Can Bank On $29
Financials ( CAD)
Sales 2017 21 574 M
EBIT 2017 7 834 M
Net income 2017 5 279 M
Debt 2017 -
Yield 2017 3,60%
P/E ratio 2017 12,27
P/E ratio 2018 12,16
Capi. / Sales 2017 2,97x
Capi. / Sales 2018 2,88x
Capitalization 63 971 M
Chart BANK OF MONTREAL
Duration : Period :
Bank of Montreal Technical Analysis Chart | BMO | CA0636711016 | 4-Traders
Technical analysis trends BANK OF MONTREAL
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Average target price 101  CAD
Spread / Average Target 2,5%
EPS Revisions
Managers
NameTitle
William A. Downe Chief Executive Officer & Director
L. Jacques Ménard President
J. Robert S. Prichard Chairman
Darryl White Chief Operating Officer & Director
Thomas E. Flynn Chief Financial Officer
Sector and Competitors
1st jan.Capitalization (M$)
BANK OF MONTREAL1.92%50 678
JP MORGAN CHASE & COMPANY13.56%350 172
INDUSTRIAL AND COMMRCL BANK OF CHINA LTD42.40%324 236
BANK OF AMERICA22.94%286 659
WELLS FARGO-2.47%270 639
CHINA CONSTRUCTION BANK CORPORATION33.09%239 293