Trade finance, supply chain finance, Bank Payment Obligation (BPO), foreign exchange, money market securities, cash management, Enterprise Resource Planning (ERP) integration
Global trade is arguably the oldest industry which operates today using many of its original processes. Automation is the watch word of this established world. The physical supply chain of transport is converging with the financial supply chain provided by banks and insurance companies. With it comes an environment keen to adopt greater levels of electronic communication and automation but which has to address the potential costs and risks of message and automation integration and management.
The industry seeks common standards to enable greater transparency and price discovery. Firms are realising their competitive potential of adopting greater automation to maintain customer ‘stickiness’ throughout the system-to-system integration process. Automation offers the potential for faster processes and reduced costs. These can be fed directly into pricing and offer a competitive advantage.
This, perhaps more than anywhere else, is the world of new and evolving electronic processes. These processes will be based on messages exchanged between transaction counterparties and rely on common formats and technologies.
The financial messaging standards support a wide range of transaction instruments and reporting mechanisms. From documentary credits, to international and domestic payments, to corporate to bank exchange mechanisms, to FX rates and trades, to account reporting and advices. Each piece of the jigsaw puzzle has a set of complex, rich and dynamic message formats that govern how they are exchanged processed and how they can trigger the next leg of the transaction.
The challenge is to control the cost of implementing the necessary changes to keep pace with the evolution of these converging bank and corporate, financial and physical supply chains. The challenge is to minimise the disruption to the organisation’s existing environments, many of which are paper-based or not geared up for automation.
As the Supply Chain Finance (SCF) suite, Volante plug-in components allow the rapid take-on of new message standards and processing including, but not limited to, all Bank Payment Obligation (BPO) related standards, all ISO 20022 payments standards, all SWIFT MT standards and all SWIFT TSU message standards.