While banks leverage their Core Banking System to maintain the customer accounts, limits and loan transactions, the overall trade processes remain highly manual, fragmented and paper driven. Banks have tried to automate trade initiation partially using standalone application for data capture, application processing, workflow, document management etc. but the unified end-to-end trade finance automation is missing.
Some of the key challenges arise from the fact that core banking systems competently act as transactional system, however they do not provide Trade Finance Module. As a result banks need to adopt third party trade applications.
being used by banks to handle Trade Finance Business
Most of the big multi-national banks are using home grown applications to handle their day to day trade finance transactions.The solution is customized to the specific needs of the bank, but it has an additional reoccurring cost attached to it and time to market is also high
Second option available to banks is buying a ready to deploy point solution along with their core banking system. Point solutions are domain rich and ready to deploy, but the initial cost of the product is very high and getting bank specific modifications will cost a fortune
Our Trade finance solutions accelerator is BPM framework based domain rich solution, which is flexible enough to capture 100% bank specific requirement and is also quick to market
Banks are looking to scale up their trade finance business and increase reach in financial supply chain by extending purchase order and invoice discounting to their trade customers. However, the standalone, manual & disjointed systems are not only acting as barriers to operational efficiency but may also expose the bank to risks associated with compliance and controls.
Advancements in technology have raised the bar of expectations of the corporate customers. They prefer to reach out to banks which can provide efficient, web driven, cohesive and integrated services to suit individual customer needs. Trade Finance customers expect banks to
Investment in automating trade operations and tight integration with core banking system will result in improved efficiencies, better decision making while ensuring compliance. Technology can drive this transformation by enabling smart automation, seamless collaboration, straight through processing and effective integration.
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