Finastra, a financial software provider, has launched StandbyX, a cloud-based platform designed to help US banks automate standby letter of credit (SBLC) processing without implementing a full trade finance system. Unveiled at Money 20/20 in Las Vegas, the software uses a software-as-a-service (SaaS) model to simplify deployment and reduce the complexity of digitising these workflows.
StandbyX is built specifically for SBLC operations, enabling banks to modernise how they issue and manage these instruments while limiting integration and testing requirements. Finastra said the platform is designed for rapid deployment and competitive total cost of ownership, making it an option for institutions seeking to improve efficiency without replacing their wider trade finance infrastructure.
The launch targets a gap in the US banking market, where standby letters of credit are widely used in trade and non-trade transactions. Larger lenders typically manage these instruments through established trade finance platforms, including Finastra’s Trade Innovation. However, many regional and mid-sized banks continue to rely on manual or partially automated workflows, which can increase operational risk, restrict scalability and create inefficiencies.
StandbyX draws on the SBLC module within Trade Innovation, a platform used by more than 150 banks worldwide. Finastra said the SaaS offering is suited to institutions with low to moderate transaction volumes, allowing them to digitise processing without the expense and operational demands of a comprehensive trade finance platform.
The simplified integration and testing process is intended to help banks deploy the technology more quickly and realise benefits sooner. The product also draws on Finastra’s experience supplying mission-critical software to financial institutions globally.
Finastra’s Trade Innovation platform supports trade finance workflow automation, risk management and operational efficiency. StandbyX extends these capabilities through a more targeted offering for banks seeking to modernise their SBLC operations.
The launch forms part of Finastra’s broader investment in its trade finance portfolio and its strategy of developing modular, cloud-enabled and API-first products. By making digital trade finance technology more accessible, the company aims to serve a wider range of financial institutions.
Finastra head of trade and supply chain finance and corporate channels Vinay Mendonca said, “Many U.S. banks have traditionally managed standby letters of credit through manual processes or workarounds, while transaction volumes may be relatively low, the value of these instruments is often significant, making effective risk management essential. Finastra StandbyX gives banks access to proven SaaS technology that digitizes SBLC processing without the need to deploy a full trade finance platform. By making trade finance technology more accessible, we are helping a broader range of institutions improve operational efficiency, strengthen controls, and deliver a better customer experience. This is an exciting step in the evolution of our trade proposition.”
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