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BizDay: Trusted Data Exchange for Corp and Supplier Onboarding, Capgemini

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Manuel Sevilla, Capgemini, presents on BizDay at CordaCon 2019.

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BizDay: Trusted Data Exchange for Corp and Supplier Onboarding, Capgemini

  1. 1. The information contained in this document is proprietary and confidential. Copyright ©2019 Capgemini. All rights reserved. October 2019 Trusted Data Exchange for Corporate & Supplier Onboarding http://www.bluecatalyst.io Manuel SEVILLA Chief Digital Officer VP - Capgemini Business Services +33680964222 manuel.sevilla@capgemini.com linkedin.com/in/msevilla/
  2. 2. 2© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Capgemini and R3 are joining forces to bring to market a new platform: Blue Catalyst 200,000+ people worldwide €13.2 billion revenue in 2018 >1000 FS clients 200+ financial institutions consortium 250 professionals in 13 countries Leadership in Enterprise Blockchain “Catalyze Trust in Business” http://www.bluecatalyst.io
  3. 3. 3© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. We focus on Onboarding as a key step of any B2B relationship Starting with two strategic use cases – KYC & KYS Know Your Customer (KYC) • KYC refers to the legal obligation for the banks to conduct a due-diligence process on their corporate clients, mainly for Anti-Money Laundering, Countering the Financing of Terrorism & Anti-Bribery and Corruption purposes. • KYC ask a bank to: • Identify the customer and verify its identity • Identify the beneficial owner and verify its identity • Understand the purpose and nature of the business relationship • Conduct ongoing due diligence on the business relationship Know Your Supplier (KYS) • KYS refers to the onboarding process of suppliers by corporate buyers. It is one of the means to ensure supply chain continuity and sustainability. • KYS enables you to: • Identify an entity • Understand if you can and should do business with the entity • Monitor for suspicious activity • Understand and optimize exposure to credit, liquidity, and market risk • Build processes for operational effectiveness and compliance with regulations REGULATION • Financial Action Task Force (FATF) • EU Money Laundering Directives • Markets in Financial Institutions Directives (MiFID) • US Foreign Account Tax Compliance Act (FATCA) • OECD Good Practices Guidance • Sanctions lists REGULATION • Foreign Corrupt Practices Act (FCPA) • UK Bribery Act (UKBA) • French Loi Sapin 2 • OECD Good Practices Guidance • US Patriot Act • EU Money Laundering Directives • Child Labor & Modern-Day Slavery CorporateBank SupplierCorporate
  4. 4. 4© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Onboarding is a broken process and a pain for both onboarder & onboardee, putting their business relationship at risk Source: 1. EACT, Briefing Focus KYC, 2019 2. AFTE Days Feedback 3. Fenergo, Global AML/KYC/Sanctions Fines: 2008 - 2018, 2019 4. SEC, in the matter of Walmart respondent, 2019 Operational risks over data ownership & control Need for consent-based sharing of sensitive data as data ownership and controls are not well-enforced in data collection processes • Sensitive information (passports etc.) is sent without control2 • Lack of accountability and traceability in data collection processes2 Problem Reason Example Regulatory fines keep the pressure on Information exchange is not well-traced making audits & remediations harder, alongside constantly changing regulations • $27 billion levied in fines against financial institutions for AML/KYC sanctions violations since 20083 • Walmart pays $282m fine in 2019 for FCPA violations in overseas units4 Operational burden due to time consuming, costly & inefficient processes Redundant manual processes lead to duplication of efforts and inefficient back- and-forth between involved parties • Financial Institutions take 2 months to never to onboard a new client1 • 25h per week are spent on KYC by treasurers1
  5. 5. 5© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Blue Catalyst: A distributed B2B platform enabling data sharing for onboarding processes Streamline processes, realize cost efficiencies & accelerate time-to-business Key Benefits Full ownership & consent-based sharing of data Ensure full traceability & auditability Key Features Direct Outreach Digital Vault Ownership End-to-end & Tamper-proof Audit-trail • Each legal entity owns a digital vault and can upload data & documents in it. • Each legal entity is a node in the network. • Each legal entity can connect to another legal entity on the network to share information. • Each transaction is bilateral, private, consent-based, secured and traced thanks to blockchain technology. • Blue Catalyst uses Corda from R3 as enterprise blockchain protocol. Key Product Considerations
  6. 6. 6© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. B L U E C A T A L Y S T F O R K Y C
  7. 7. 7© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Blue Catalyst focuses on data collection and connects to the bank’s CRM and CLM systems Client Life Cycle Management / KYC Suites Prospection & Campaigning Data collection • Blue Catalyst focuses on Customer Outreach for Data collection • It integrates through API with CRM & CLM systems of the bank, as well as KYC/CDD Suites and shall not require any significant modification of current onboarding workflows.
  8. 8. 8© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. ▪ The bank sends a questionnaire to the counterparty that contains data & document requests sorted by sections. ▪ Blue Catalyst enables prefilling of corporate information by external data providers or banks, validated by clients. ▪ Under this design, each legal entity is accountable of the data shared across the network which can be e-signed by the accountable person (treasurer or delegates). ▪ Overall data quality is higher by nature as data is sourced directly from the accountable legal entity. Blue Catalyst for KYC (1/2) CorporateBank 4. Send data & documents 1. Request for consent 2. Consent to proceed 3. Send request for Data and documents Bilateral and secure communication with complete traceability Vault prefilled & filled by corporate
  9. 9. 9© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Dramatically reducing duplication efforts thanks to a Taxonomy-driven matching engine ▪ When the counterparty receives a question, Blue Catalyst can detect from the taxonomy code if this question has already been answered. It selects previous answer automatically, thanks to a matching engine. ▪ This process will dramatically reduce duplication efforts for Corporates, while increasing the quality of the answers and accelerate time to business. ▪ Treasurers will have to focus on new questions only and will have the opportunity to send updated information to their banks. ▪ Banks will also benefit from a unified view of clients across entities relying on the agreed taxonomy ▪ Different banks can agree to use the same taxonomy and benefit from the acceleration it brings thanks to mutualization. 2. Send requested data and documents 4. Data and document are automatically matched against previously sent data & docs and corporate answers new questions 3. Ask for data and documents for a new KYC process Bank 2Bank 1 1. Ask for data and documents for a KYC process Bilateral and secure communication with complete traceability Corporate
  10. 10. 10© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Providing a tamper-proof audit trail of the end-to-end KYC workflow ▪ On Blue Catalyst, every data transfer creates a transaction which is added to the ledger. ▪ This ledger generates a complete audit trail that cannot be tampered. ▪ This audit trail includes for each transaction a timestamp, the list of the actors involved, and a hashcode to prove which documents have been used in the transaction. ▪ It answers the questions : What/How/When/Who Corda Enterprise Blockchain Taxonomy-based Translator User and API Interface Blue Catalyst Onboarding Request GTC Signed Send Questionnaire Receive Questionnaire Answer Questionnaire Bank Counterparty Data provider AML/Sanction Data Provider Data Collection Screening Natural Persons ID&V KYC Tasks Legal Entity Unwrapping Business Data Provider Data Verifier Receive Answers Taxonomy-based Legal Entity ID&V Profile Web Service & API Endpoints Bank-specific processes
  11. 11. 11© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. B L U E C A T A L Y S T F O R S U P P L I E R O N B O A R D I N G
  12. 12. 12© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Collecting first-hand data directly from accountable sources ▪ The corporate sends a questionnaire to the supplier that contains data & document requests sorted by sections. ▪ Blue Catalyst enables prefilling of corporate information by external data providers. ▪ Under this design, each legal entity is accountable of the data shared across the network which can be e-signed by the accountable person (treasurer or delegates). ▪ Overall data quality is higher by nature as data is sourced directly from the accountable legal entity. SupplierCorporate 4. Send data & documents 1. Request for consent 2. Consent to proceed 3. Send request for Data and documents Bilateral and secure communication with complete traceability Vault prefilled & filled by supplier
  13. 13. 13© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Blue Catalyst for supplier sourcing and onboarding Smart automation E-signature / E-certificate Speed-up procurement process Traceability & Integrity ▪ During supplier refreshment process, the procurement teams needs to ensure the suppliers but also their indirect suppliers respect contractual and legal obligations (e.g. organic food, no children at work, security & compliance, ISO respect …) ▪ Blue Catalyst brings many breakthrough capabilities: ✓ Requesting Process and forward of the request to the whole supply chain can be fully automated ✓ Ability to plan and automate regular campaigns per type of certification or per Bill of Material ✓ Forward of certificates initially coming from certifiers is done digitally and can be fully automated ✓ The integrity of the certification is proven with both the audit trail that contains the whole path and by the signatures of the certifiers and the suppliers at each step of the forward process. Your SuppliersProcurement Their Certifiers Their Suppliers Sourcing Request Certification Request Bilateral and secure communication with complete traceability
  14. 14. 14© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Blue Catalyst enabling Supply Chain Finance ▪ Blue Catalyst could integrate with current Supply Chain Finance workflows and feed them with all the necessary information to support business needs, thanks to the secure sharing of information between properly identified actors and to the traceability and immutability of transaction records in the distributed ledger. ▪ This verified information can be used for a number of Supply Chain Finance use cases, such as payable finance, receivables purchases (factoring, reverse factoring), loan or advance against receivables, as well as pre-shipment finance for instance. ▪ Blue Catalyst can support new business opportunities around Sustainable Supply Chain Finance by enabling third-party certifiers to connect to the platform and provide certified information regarding sustainable performance. This information will be secured and traced thanks to the distributed ledger technology. Supplier 2. Send requested data and documents 4. Data and document are automatically matched against previously sent data & documents 3. Ask for data and documents BankCorporate 1. Ask for data and documents Bilateral and secure communication with complete traceability
  15. 15. 15© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. D E M O
  16. 16. 16© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. Contacts Manuel SEVILLA Chief Digital Officer VP - Capgemini Business Services +33680964222 manuel.sevilla@capgemini.com linkedin.com/in/msevilla/ Abbas ALI Global Head of Identity & KYC R3 +44 7496 784318 abbas.ali@r3.com linkedin.com/in/askabbas/
  17. 17. 17© 2019 Capgemini. All rights reserved. The information contained in this document is proprietary and confidential. This document contains information privileged and confidential and it is property of Capgemini. The information regarding concepts, ideas, methodologies and others material used are strictly limited to be used by the recipient only in order to evaluate the viability of the project. The total or partial reproduction or copy of this document shall not be provided to other entities outside the recipient, without previous authorization from Capgemini. Copyright © 2019 Capgemini. All rights reserved.

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