From paper to digital – SEB launches digital guarantees

For decades, trade finance guarantees have depended on paper-based processes – involving manual signatures, courier deliveries, and physical documentation. The digital transformation is now changing this. SEB now offers digital guarantees for clients in the Nordics and Germany, paving the way for faster and safer trade finance.

Through a collaboration with Digital Vault Services (DVS), SEB now offers Digital Guarantees through the Guarantee Vault Platform (GVP), marks an important milestone in the bank’s broader digital transformation strategy.

“This is not just about digitising a specific document – it’s about transforming the guarantee process itself,” says Sara Dahlman, product manager Bank Guarantees at SEB. “Digital guarantees remove manual steps, provide real-time visibility for all parties, and increased security by reducing the risk for fraudulent documents. It is an important step in SEB’s ongoing digital transformation of Trade Finance.” 

Risk reduction and improved transparency

With Guarantee Vault corporates can manage their guarantees digitally from start to finish. Every action is securely recorded and digitally certified, ensuring full traceability. Beneficiaries can access guarantees instantly – no couriers, no paperwork and increased efficiency. 

“For beneficiaries, the experience is smoother and more reliable,” adds Catharina Odin, product manager Trade Finance Digital Channels. “Digital guarantees reduce risk, improve transparency and support more effective ways of doing business.”

Trade Finance has long relied on paper and manual handling. A guarantee typically involves at least three parties – SEB’s client that is the applicant, SEB as the issuing bank, and the beneficiary. Traditionally, these guarantees have been sent as signed paper documents by courier.

“If you come from another business area, you’re often surprised by how much paper there still is in Trade Finance” says Odin, “With digital guarantees, we really move the needle towards digitising this area.”

In several European jurisdictions as far as we are aware, there are no strict format requirements for guarantees, meaning that they can also be digital. The key factor is that the beneficiary accepts the format being digital.

We believe that various types of guarantees across multiple sectors can transition to digital formats. We do not anticipate any major amendments to the guarantees themselves to enable this transition; it is primarily a matter of minor textual adjustments.

Approval of a digital guarantee is always at the discretion of the beneficiary and since many jurisdictions do not impose specific formal requirements for guarantees they could be digital.

At present, SEB’s digital guarantees—alongside data sets and other elements in GVP—include a digitally signed PDF. This is intended to make the shift from paper to digital smoother, more seamless, and acceptable for all parties involved, particularly the beneficiary.

The move to digital guarantees brings several advantages for clients and their trade partners:

• Transparency
  All parties share the same real-time information.
• Efficiency
  Faster processing of guarantee issuance and post-issuance activities.
• Security
  Digital guarantees are harder to falsify than paper ones.
• Traceability
  Full audit trails enable accountability.
• Convenience
  Beneficiaries can easily access guarantees digitally and choose if they would like to be registered on the platform or not.

“Clients tell us the biggest relief is knowing exactly where a guarantee is and its current status,” says Dahlman. “In our digital guarantees through the Guarantee Vault the guarantee is always to be found there, traceable and accessible. In other words, the digital guarantee does not get lost.

Flexibility is key

A key strength of the solution is its flexibility. Customers can apply for a digital guarantee using their channel of choice. Beneficiaries can access guarantees even if they are not a registered user of the Guarantee Vault Platform, receiving a secure login for that specific transaction.

“That flexibility lowers the threshold for adoption,” explains Odin. “You can start small, test one digital guarantee, and expand from there.”

In terms of launching digital guarantees, SEB is now rolling out in the Nordics as well as Germany.

“We are not doing this as an exclusive SEB solution – it is open for others to join. The more banks and corporates that adopt digital guarantees, the faster the industry moves forward,” says Odin.