Forfaiting Digitalisation App

Forfaiting Digitalization App

Problem Statement

Forfaiting is enunciated when a corporate sell the Bill of Exchange (BoE) on without recourse basis to a forfeiter (bank) based on a co-acceptance by an Avalising Bank. However, this is currently a very manual process where multiple documents and emails are exchanged between various stakeholders such as Corporate, Avalising bank and Forfaiting bank.

Some of the key factors affecting are:

Poor collaboration between the stakeholders
Manual, paper-based and time-consuming process
No visibility on various status among the stakeholders
Manual Quote, offer and acceptance process with physical document submissions.
Limited ability to perform analysis by various stakeholders.

Digitally connecting Corporate, Avalising bank and Forfaiting bank via the platform to enhance collaboration and visibility using new generation technologies. A real-game changer with Traceability, and reduction in costly delays. The process becomes paperless with the platform. They are expected to have a profound impact on how businesses transact and participate in global transactions with integrated offerings.

Paper offer and acceptance are replaced by blockchain-based digital agreements
Transaction flows are set up so that each counterparty can view and transact their documents digitally. Any update or change needs to be validated by all the counterparties, which allows the transaction to be executed digitally.
A multitude of benefits for all parties across the transaction flow. Quicker processing allows transactions to be completed earlier, ensuring the corporate receives funds earlier and the bank has higher income opportunities.

The Business Need

Banks and Financial Institutions run their current forfaiting process involving multiple parties typically in a paper-intensive manual process manner.

Challenges

Business Scenario

Organizations are facing disruptions in their cash flows on account of delays in receipt of funds.

Current business climate demands streamlining of cash flows as a critical business requirement.

Banks/FIs are moving digital with higher automation, greater visibility, increased profitability and revenue opportunities.

The lack of visibility in forfaiting process leads to inefficiencies and thereby reducing the revenue generation opportunities for the banks.

The forfaiting process is a complex process covering multiple organization with heavy documentations.

Key customers demands a time-efficient process and wants to remove manual tasks and delays that significantly impact the business revenue and profitability.

dltledgers Can Help You

Our state-of-the-art blockchain-based platform provides a smoothened and streamlined MFA (Master Facility Agreement) management process, Offer and Acceptance process, involving Corporate, Forfaiting bank and Avalising Bank. This App enforces reduced cycle times and enhanced user efficiency eliminating time-consuming manual tasks.

The app also enhances greater real-time collaboration across stakeholders in a multi-party environment with tamper-proof record of transaction documents and data with auditability.

Solution

Solution Brief

The application enables to smoothen and streamline the management of Master Facility Agreement (MFA) involving Corporate and Forfaiting bank with shorter cycle time which improves process efficiency and supports better customer relations.
It helps to enhance collaboration with multiple parties in multiple geographies in real-time with improved user-efficiency and provides authentication/verification of data/documents shared
Enforcement of effective tracking of offer, acceptance and disbursements, Payments & settlement in enabled using the applications with enhanced end-user experience
Greater visibility and transparency across the digital network of customers helps to drive reduction in transaction times resulting in cost efficiency.
Enables optimised forfaiting process for all stakeholders in line with business rules established in the network
Streamlines transaction flows involving multiple corporates, banks and Financial Institutions in multiple geographies in a digital network with focussed operational insights.
Accurate data exchange and digital document repository with auditability across functional departments and ecosystem participants.
Real-time reports and secure tracking with verified documentations and certifications as tamper-proof digital records for future use and compliance.

Benefits

A web-based application using blockchain technology in a collaborative ecosystem. There is competitive advantage derived from data sharing and an ecosystem approach digitally.
The streamlined process has cut corporates average working capital cycle by about 15 to 20 days.
The efficiency of the solution has provided corporates to streamline their business better with improved cashflows
Banks can increase their revenue opportunities and broaden its reach into customers globally.

“We are thrilled to have launched our blockchain operations with our partners, dltledgers. We see the potential to revolutionise how we finance cross-border transactions at the bank. Not only will it impact our bottom line, but it will enable us to reduce processing time, be more responsive to our clients, and de-risk transactions.”

– Michael Awori, CEO, Trade Development Bank (TDB), Group, Burundi, Africa

Forfaiting Digitalization App

Problem Statement

The Business Need

Challenges

Business Scenario

dltledgers Can Help You

Solution

Benefits

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