Today at Money 20/20 in Las Vegas, Finastra announced Finastra StandbyX, a cloud-enabled solution designed to help U.S. banks digitize and automate standby letter of credit (SBLC) processing while strengthening risk management and operational efficiency.
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SBLCs remain a widely used instrument across both trade and non-trade transactions in the U.S. While larger institutions typically manage SBLCs, alongside broader trade finance operations on platforms such as Trade Innovation, many regional and mid-sized banks continue to rely on manual or semi-manual processes. This can create operational inefficiencies, increase risk, and limit scalability.
Purpose-built for SBLCs, Finastra StandbyX provides a streamlined SaaS deployment model that enables banks to modernize their operations without implementing a full trade finance platform. Designed for rapid implementation, the solution minimizes integration requirements and testing effort while offering a competitive total cost of ownership.
The launch forms part of Finastra’s ongoing investment in its trade solutions portfolio, helping financial institutions modernize operations, improve efficiency, unlock new growth opportunities, and deliver better customer and user experiences.
How Finastra StandbyX helps banks in the U.S.
• Provides proven standby letter of credit capabilities, through the SBLC module of Finastra’s Trade Innovation platform, which is trusted by more than 150 banks globally, helping institutions digitize operations, support growth, and strengthen risk management.
• Offers a SaaS deployment model that enables banks with low to moderate transaction volumes to implement quickly and begin realizing value sooner.
• Reduces operational complexity through streamlined integration and testing requirements.
• It is backed by Finastra’s decades of experience supporting mission-critical banking systems for financial institutions worldwide.
Expert perspective: Digital trade for more banks
“Many U.S. banks have traditionally managed standby letters of credit through manual processes or workarounds," said Vinay Mendonca, Head of Trade and Supply Chain Finance and Corporate Channels at Finastra. 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."
Finastra StandbyX builds on the proven capabilities of Trade Innovation, Finastra’s trade finance platform that helps financial institutions automate workflows, manage risk, and improve operational efficiency. As part of Finastra's strategy to deliver modular, cloud-enabled and API-first solutions, StandbyX extends access to digital trade functionality for a wider range of banks.