Banking and Finance Business Network Digitalization

Banking and Finance Business
Network Digitalization

Problem Statement

Challenges in multi-bank connectivity and related process involving various trade finance instruments.

Technology is transforming the way banks/financial institutions are interacting with their corporate clients. An organisation involved in cross-border transactions are looking for secure multi-bank connectivity that offers multiple trade finance services over one single channel that can scale seamlessly.

To gain value and reduce the inefficiencies, organisations are addressing to resolve some of the below pain points using advanced digital technologies such as blockchain, AI, Machine Learning. They are expected to have a profound impact on how businesses transact and participate in global transactions involving multiple banks.

Poor multi-party collaboration and co-ordination between internal business functions (Operations, Finance) of an organisation and the various banks/FIs with which organisation has financing facilities.
Manual/semi-automated submission of transaction application request, and data/document exchanges that makes the process time-consuming, error prone and cumbersome.
Refine and simplify treasury operations with payment status updates and activity logs with enhanced visibility and transparency in procure to pay and order to cash processes.
Little to no exposure on third-party risk management or extended supply chains and non-compliances to multi-geographic jurisdictional requirement.
Automate the error-prone manual steps on execution and payment reconciliations, order-to-cash applications, and order entry documentations.
Lack ability to create a multi-bank, digital channel between your organisation’s ERP system and banks/ FIs you deal with that offers connectivity that complements SWIFT.

As organisations prepares for the digital transformation journey, they are looking at connecting their business operations with banks/Financial Institutions seamlessly without human interventions to increase efficiency and transparency. In addition to this, they want to ensure control and boost reliability on the banking network involving multiple banks in multiple jurisdictions.

The Business Need

A secure business network for corporate to bank relationship with enhanced visibility, transparency, and multi-bank connectivity.

Challenges

Business Scenario

Organizations are facing more scrutiny in banking relationships especially when cross-border transactions are involved.

Business agility requires managing automatic payment request facilitation with multi-party especially in cross-border transactions involving high value

Organisations are moving digital to provide greater visibility, to their banking/financing partners to differentiate themselves from others in terms of their credibility and genuinity of transactions.

The lack of visibility and transparency for managing multiple bank accounts and manage their workflows.

The Trade finance/Treasury process is a complex process covering multiple banks, trade financing instruments with heavy documentations and multiple contracts.

Trade finance/Treasury process is a time-consuming manual tasks and delays can significantly impact the business revenue and profitability especially in dealing with multiple markets

dltledgers Can Help You

Our state-of-the-art blockchain-based platform provides a smoothened and streamlined connectivity with banks and other financial institutions. This App enforces effective and seamless procure to pay and order to cash processes involving multi-bank connectivity with reduced cycle times and enhanced user efficiency eliminating time-consuming manual tasks.

The app also enhances greater real-time collaboration for treasury department across banks and corporates in a multi-party environment with tamper-proof record of transaction documents and data with auditability on a secure digital network.

Solution

Solution Brief

Secure multi-bank and multi-corporate connectivity with added blockchain encryption and digital signatures to capability to dynamically exchange messages with financial institutions.
Enhance collaboration with multiple parties in multiple geographies with improved communication efficiency, user-efficiency and end-user experience
Enforcement of effective risk-free contracts across distributors/customers in multiple geographies with integration to the core systems of records for seamless execution on order to cash and procure to pay processes
Greater visibility and transparency across the digital network of banks to drive enhancements in treasury operations and release working capital efficiency.
A secure real-time information on the status of each trade finance transactions with status flags ensuring that the digital network members can quickly and effectively triage a vast range of operational issues and enable optimised payment flow line with promise date.
Streamlined banking process for transaction requests involving multiple banks and corporates in multiple geographies in a digital network with focussed operational insights.
Accurate data and digital document repository with auditability across functional departments and ecosystem participants.

Benefits

Platform and the application help streamline bank to corporate connectivity as a secure channel with data/document exchanges shared in real-time
Banks can have digital trade finance execution using the application and increase their wallet share as Global Business Partners in the network
System brings more transparency and generates more value in the network, providing faster time to resolution and reduced fraud
Visibility into transaction generates more confidence in client and their operations
Platform allows banks to create more value from existing network of clients and create new revenue streams.
Building and expanding the client network is made easy via the platform.

“Being part of this digital networks has helped banks with more visibility into customer operations, increasing transparency of the business transactions. This will surely reduce fraud and related risk and build cross border inter-connectivity.”

– Samuel Mathew, Global Head of Documentary Trade, SCB