Bank-to-Corporate connectivity is about the methods by which banks and corporates communicate key information on a trade finance transaction between each party. Challenges in this interaction are many, when done manually. There is a need to address it digitally.
Trade finance uses specific instruments for trade finance mechanisms that banks/financial institutions use when working with corporates, to ensure that the international transaction cycle continues uninterrupted.
Banks are struggling to keep outdated, customized, and siloed systems and processes integrated, causing critical inefficiencies for running the trade finance process. To gain value and reduce the inefficiencies, banks are addressing below process and related pain points using advanced digital technologies such as blockchain, AI, Machine Learning. They are expected to have a profound impact on how banks transact and participate in global transactions as an embedded business partner into a transaction initiated by corporates along with their ecosystem.
Challenges in Trade Finance Process involving Bank and Corporates:
Bank to corporate communication for trade finance transactions using emerging technologies.
Banks are facing complexities in their interactions with corporates involving multiple channels/ecosystem business partners.
Understanding of the business activities & chain of custody in multi-party transactions especially within and outside large corporates is becoming a critical business requirement for banks.
Banks are moving digital with higher automation, greater visibility as per the regulatory and operational requirements to ensure compliance and risk mitigation.
The lack of visibility in leads to inefficient supply chain, with collaboration issues and inability to enforce effective risk-free contracts leads to delays in payment processing.
The trade finance process covers multiple trade finance instruments like LC with heavy documentations and involving multiple contractual obligations.
Key corporates need fast and efficient and not a more time-consuming manual tasks and delays in a financing partner as it impact the business revenue and profitability.
Our state-of-the-art blockchain-based platform is designed to provide a streamlined trade finance transaction process involving banks and corporates. This App allows reduced cycle times and enhanced user efficiency in Bank-to-Corporate connectivity, eliminating time-consuming manual tasks.
The app also enhances greater real-time collaboration across Transaction value stream in a multi-party environment with verifiability of transaction records, tamper-proof record of transaction documents and data with speed, accuracy and security bringing in auditability and accountability.
“Abu Dhabi Commercial Bank (ADCB) has digitised trade finance for its customers using the Singapore-based dltledgers Blockchain platform. ADCB is the first bank in UAE to run the end-to-end Blockchain trade finance transaction with full document automation for accounts payables through the dltledgers platform, offering corporate customers greater confidentiality, the ability to keep a closer tab on the flow of the goods and documentation, faster turnaround, and enhanced fraud prevention”
– Krishnakumar Duraiswamy, Head of Trade Finance at Abu Dhabi Commercial Bank