Telecommunications provider Alcatel-Lucent has teamed up with Crédit Agricole CIB to establish an electronic bank guarantees process for the delivery of complex projects.

Based on SwiftNet’s Trade for Corporates standard, this new process delivers improved efficiency and will help establish standardised, multi-bank solutions.

Although there is a growing demand on bank guarantees to secure the delivery and maintenance of complex projects, there are few tools to electronically optimise this activity, Crédit Agricole says in a statement.

Traditional guarantees typically rely on the exchange and archiving of paper-based information. While the current system offers reporting capabilities, treasury managers often struggle to identify and reduce redundant activities and proactively manage bank limits.

Instead, managers need to connect to the portal of each of their banks to manage their operations, the bank goes on to say.

Because of these challenges, Alcatel-Lucent has implemented a re-engineering project of its workflow of guarantees issuances, impementing a standard format for structuring information, a solid tool for online management and a cost-effective channel to connect with more than hundred banks.

The Trade for Corporates standard supports the use of multi-banking trade finance solutions which are not tied to any one technology or service provider.

The bank aims to roll out its electronic guarantee service for other customers, starting in Europe and then expanding into other global markets. Alcatel-Lucent will also replicate this solution with its other banking partners as the next step in developing its guarantees and financial oversight processes.