DNI Initiative – Lloyds Bank takes the lead in adopting ITFA’s dDOC and ePU

We are thrilled to share breaking news with regards to Lloyds Bank – member of ITFA’s DNI Initiative.

Under legal guidance, Lloyds Bank developed a digital promissory note – a solution that works within contract law and utilises the International Trade and Forfaiting Association’s (ITFA) dDOC specifications, under the Digital Negotiable Instrument Initiative (DNI Initiative).

On August 17th, Lloyds Bank successfully completed a ‘pilot’ transaction, which is the first under the DNI initiative, and a key milestone in the digitisation of trade finance.  The transaction was initiated and completed within the day and involved the sale and purchase of land worth £48m between several UK businesses. The Bank’s promissory note was issued using Enigio´s solution, trace:original, for digital original documents. 

“Promissory notes are an important tool for businesses that undertake large transactions but are a relatively niche solution. Their use allows purchases to progress where shortage of cashflow may otherwise prevent them.  Until now, this industry-side solution is typically slow, expensive, and administratively cumbersome.”, says Gwynne Master, MD, Lending and Working Capital for Lloyds Bank. “With this successful UK-first transaction, we have delivered an innovative digital solution that is quicker, less expensive, and more secure.  The digitisation and simplification of this solution finally opens this form of payment discounting to potentially millions of small businesses, improving their ability to manage their working capital and the cashflow of their suppliers by fulfilling invoices more quickly.”

Many congratulations to the team at Lloyds Bank for delivering this first DNI transaction and showing the way to digitise negotiable instruments. Discover the full PR.

Join us at the Fintech briefing in Porto which starts at 9am on Wednesday 7 September. This is where you will learn more as Merisa Lee Gimpel, Managing Director of Solution Development for Working Capital and Lending Products at Lloyds Bank and member of DNI Initiative will expand on this remarkable achievement she has led.