Electronic Letter of Guarantee for Banking System

Guarantees are generally used to cover the risk of a contracting party failing fulfill its agreed obligations (such as non-payment or delivery). Collateral can be in open account trading it complements collection efforts and documentary credits. A guarantee is type protection that one imposes on other transaction event second fails according predetermined specifications. In this case, first receives amount compensation from guarantor, while required return payment. This paper provides an indepth analysis areas automating bank guarantees electronic form comprehensive all procedures processes related management.. Through service, suppliers will able issue electronically conduct operations management without need visit bank, which contributes increasing operational efficiency, eliminating fraud contributing digital transformation. service also contribute reducing costs limiting waste time effort. It allow beneficiaries easily follow up operations, including extension, cancellation, liquidation confiscation human intervention.