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Commercial credit analysis can introduce a lot of complexities into the banking organization: additional underwriting standards, new financial data to collect and interpret, complex relationships with multiple entities and commingled incomes, additional regulatory focus, etc.
Sageworks Senior Consultant Peter Brown covers some of the basics that come with credit analysis including what data to consider, how to analyze the data, when to introduce benchmarking and automation and other topics.
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Commercial credit analysis can introduce a lot of complexities into the banking organization: additional underwriting standards, new financial data to collect and interpret, complex relationships with multiple entities and commingled incomes, additional regulatory focus, etc.
Sageworks Senior Consultant Peter Brown covers some of the basics that come with credit analysis including what data to consider, how to analyze the data, when to introduce benchmarking and automation and other topics.
In this presentation, Anup Singh domain leader of SME Finance domain at MicroSave highlights the key opportunities for the banks in enhancing access to finance to SMEs and also retaining customers through provision of non-financial services. Amongst other things, the focus is on use of automation to enhance efficiency in the processes of SME finance, lower origination cost and reduce turnaround time in expanding access to finance to SMEs.
Aguai Solutions Perspective on New Age Digital Lending. Leverage the power of Digital Infrastructures to offer a Convenient of Lending to the right consumers through right Digital 30 degree of Credit Risk scores
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Supply chain finance models Part 1: bank-agnostic models, bank-funded and man...sharedserviceslink.com
So maybe you are efficient in your invoice handling process. What should you do next? GlaxoSmithKline has rolled out a global supply chain finance program with a global financial institution after successfully implementing e-invoicing programs in the US and UK.
In this session, Sean McDermott reveals how to:
- Fix your standard payment terms at 60 days or more whilst keeping suppliers happy
- Improve suppliers’ cash flow and help your working capital position even if you are in a slow-payer market
- Implement your supply chain finance program on a global scale
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How can you position for growth in future ecosystems of trade and supply chai...Misys
Explore this presentation to see:
1. What key drivers are transforming Financial Supply Chain Management today
2. How trade and supply chain convergence drives ROI from your existing investments
3. Whether banks see P2P and supplier networks as the ‘Comet Coming’? or a major opportunity?
Euromoney Seminars’ Global Transaction Banking Congress will bring together the heads of transaction banking from across the globe in discussions regarding their strategy and concerns for the market. The conference is aimed at a strategic level discussion focussing on the key concerns of the market whilst also providing an excellent networking and thought leadership platform.
Transaction banking is proving to be an effective fee generator for banks in the wake of post-crisis regulation and lack of liquidity and the questions of how best to align the strategy and management of their transaction services are at the forefront of transaction bankers’ minds.
www.euromoneyseminars.com/gtbc
Building Highly Scalable Immersive Media Solutions on AWSETCenter
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Speakers: Konstantin Wilms, Principal Solutions Architect M&E, AWS and Chad Schmutzer, Specialist Solutions Architect SPOT, AWS
Payment for exports and export promotion schemeHarender Singh
Payment for exports refers to the process of receiving payment from a foreign buyer for goods or services that have been exported. The payment process for exports can be complex and involves various risks, including currency exchange rate fluctuations, non-payment, and fraud.
There are several methods of payment that can be used for exports, including:
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Documentary Collections: This is a process where the exporter ships the goods to the buyer and provides the shipping documents to their bank. The bank then sends the documents to the buyer's bank, who will release the documents to the buyer once payment has been made.
Open Account: This is where the exporter ships the goods to the buyer and allows the buyer to pay at a later date, typically 30-90 days after the shipment. This method is the least secure for the exporter as they may not receive payment if the buyer defaults.
It is important for exporters to carefully consider their payment options and to understand the risks associated with each method. Exporters may also want to consider using the services of a trade finance professional or export credit agency to help mitigate risks and ensure timely payment.
A project report on an applied understanding of recovery of payment in africa...Mukul Kumar
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It includes EXIM financing - Preshipment and Post shipment Financing, Forfaiting and factoring. In addition to this Interest rate subvention and ECB are also covered
This guide outlines the common techniques of export financing
and provides an overview of the solutions Silicon Valley Bank
provides for our clients selling overseas.
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USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
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What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
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Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
2. Agenda
2
• Urs Kern, SWIFT: An update on the
Bank Payment Obligation
• David Hennah, Misys: Technology
Innovations in Trade and Supply
Chain Finance
• Ravichander Varadarajan, ING
Vysya Bank: A Perspective on India
and Cross Border Supply Chain
Finance
3. Evolution of international trade – risk mitigation and
financing
3
First UCP
LCs loosing share in world trade
Trade finance instruments based on open
account payment are increasing. First
supplier finance products
Bank Payment Obligation
1933
Since about
1960
Since about
1990
2013
Innovation in SCF – The BPO; 13th March 2014, Istanbul
4. Bank Payment Obligation (BPO)
What is BPO?
The Bank Payment Obligation is a new payment term based on data
matching which can be used for risk mitigation and financing!
Irrevocable
concrete &
conditional
What are the
general criteria
of a BPO?
„A Bank Payment Obligation (BPO) is an irrevocable and
independent undertaking of an Obligor Bank to pay or to
incur a deferred payment obligation and pay at maturity
a specified amount to a Recipient Bank in accordance
with the conditions specified in an established baseline.“
(Extract from the URBPO)
What is new?
For the first time an open account payment obligation can be confirmed by
banks in order to get financed. The ICC supports the market launch with the
release of unified rules (URBPO).
Innovation in SCF – The BPO; 13th March 2014, Istanbul
5. Payment risk mitigation instrument
Communication Channel
Communication standard
Three components for electronic matching of
commercial trade data
ISO 20022 TSMT
(Trade Service Management)
Between Banks:
TMA
(Trade Matching Application)
BPO
(Bank Payment Obligation)
Between customer and banks:
Bilaterally to be agreed
(Portal/SWIFT Score/Paper)
Innovation in SCF – The BPO; 13th March 2014, Istanbul
6. The BPO based on electronic data matching
6
Matching of
contract data
Transfer
of funds
Matching of
data
Buyer Seller
1) Sign contract (PO)
2) PO data 3) SO data
4) Match PO/SO data & confirm
6) Match requested datasets & confirm
5) Datasets
8) Transfer funds
7) Debit buyer 9) Pay sellerFIN
TMA=Transaction Matching Application, PO= Purchase Order; SO= Sales Order
TMA
Bank A Bank B
Buyer Seller
Bank A Bank B
TMA
Buyer Seller
Bank A Bank B
BPO is established
BPO is due
Trade is settled
5) Datasets
Innovation in SCF – The BPO; 13th March 2014, Istanbul
7. BPO as compared to Letters of Credit and Open Account
BPO enhances the LC process while addressing Open Account challenges
• Electronic presentation of data instead of
physical documents - Improve quality and
objectivity of compliance verification
• Quicker process as it focuses only on data
relevant for financing
• Can be added at any time, for any amount
value
• Sellers gain certainty of the timing of cash flow
and can improve liquidity forecasts
• Sellers may use BPO to get pre-/post-shipment
finance through their own bank
• Sellers can offer commercial incentives
• Buyers are able to reduce supply default risk
Compared to Letters of Credit… ….Compared to Open Account
• Sellers get pre-/post-shipment financing to
support working capital needs – no need for
loans or revolving credit lines
• Sellers can negotiate earlier payment terms as
Buyers have better access to financing using
BPO
• Buyers can extend payment terms from their
own banks
• Improve transaction tracking and payment
reconciliation
• Establish and maintain successful win-win
trade relationships
• Reduce on-boarding and operational costs
Innovation in SCF – The BPO; 13th March 2014, Istanbul
8. •Limited buyer-seller relationships
•Target “wealthy” and risk-free corporates
•Based on proprietary formats and channels
•Business relationship with Trade Service
Provider
Summary: Supply Chain Finance for corporates
Open 4-corner vs. closed 3-corner business model
•Large and growing trade players worldwide
•Any corporate irrespective of their risk profile
•Requires open and interoperable standards
•Business relationship stays with the banks
BPO
Buyer/
Importer
Seller/
Exporter
Exporter’s
bank
Importer’s
bank
Risk, financing &
processing
services
Risk, financing &
processing
services
Routing and
Settlement
Routing and
Settlement
Production
(Market)
Distribution
(Client)
Business
relationship
& liability
+
a/c
+
a/c
Processing
platform
Contract TMA
Processing
platform
8
Business
relationship
& liability
Buyer/
Importer
Seller/
Exporter
Service
Provider
Risk &
processing
services
Financing
services
Routing and
Settlement
Production
(Market)
Distribution
(Client)
+
a/c
Processing
platform
Contract
+
a/c
9. BPO adoption grows steadily
9
Counter Count
Banking groups adopting BPO 55
Banking groups live on BPO 7
Corporates live on BPO 22
Banking groups ready for live use of BPO 17
Banking groups reachable on TSU 83
BIC8s reachable on TSU 146
BIC8s and BIC11s reachable on TSU 225
Countries reachable on TSU 45
BPO certified applications
5 for Banks
4 for Corporates
BPO certified consultants 2
Innovation in SCF – The BPO; 13th March 2014, Istanbul
10. Live BPO banks
Banks with live transactions + 1 corporate case study
10
Live Banks Region Intra /
Inter-bank
transations
Locations of
live corporate
supply
chains
Corporate case study
Bank of China APAC Intra in
China
Inter
CN Ito Yokado’s Chinese suppliers
Bank of Tokyo Mitsubishi
UFJ
APAC Intra
Inter
CN, HK, JP,
SG, TH, TW
Ito Yokado
Mitsubishi-Shindoh Co.,Ltd.
MSM (Thailand)
Vale
Korea Exchange Bank APAC Inter KR OMRON Automotive Electronics
Korea Co.Ltd.
Standard Chartered
Bank
APAC
EMEA
Intra BE, OM, TH,
AE
BP Chemicals
Octal
PTT Polymer Marketing Co in
Thailand
Polymer Marketing DMCC in Dubai
Siam Commercial Bank APAC Inter TH PTT Polymer Marketing Co
Hua Nan Bank APAC Inter TW Importer in TW
Bangkok Bank APAC Inter TH Exporter in TH
13. 13
Emerging Trade Flows & Trade Corridors
Re-shaping the strategic approach of corporates and banks.
14. 14
Growth in International Trade
Year World Trade
(WTO data)
Total Volume of
LCs on SWIFT
Estimated Value
of LCs
% world trade
on LC (by value)
1970 USD 2 trillion USD 1.0 trillion 50.0
2000 USD 6 trillion 4.5 million USD 1.5 trillion 25.0
2010 USD 15 trillion 4.6 million USD 2.5 trillion 18.0
2020 (est) USD 33 trillion 4.7 million USD 3.5 trillion 11.0
Conclusion: if industry forecasts for growth prove correct, by 2020 we could have
an additional USD 17 trillion worth of open account trade in respect of which
banks will compete through innovative financial supply chain solutions.
15. Supply Chain Finance: the long view.....
Supply Chain Finance
Traditional trade Open Account
• Letters of Credit
• Collections
• Standby letters of credit
• Guarantees
• PO Commitment to Pay
• Pre-shipment finance
• Warehouse finance
• Post-shipment finance
• Approved payables finance
• Receivables purchase
• Etc
• Structured Trade Finance
• Commodity Trade Finance
• Islamic Trade Finance
• Bills discounted
• Factoring
• Forfaiting
• Credit insurance
• Etc
ANY Financial Solution that can be applied
to help a corporate
(a) optimise its working capital and
(b) minimise its operational costs/risks
associated with supply chain processes
15
16. 16
The challenge and the opportunity in Supply Chain Finance
New messaging
standards / new rules /
new operating
procedures
Continued growth in
volume and value of
world trade (USD trillion
by 2020)
Continued migration to
open account (80/90% of
the market)
In the face of evolving market conditions and competition how can your bank
retain and grow its trade business?
Regulatory requirements
/ capital constraints
Demand for innovative
solutions taking
advantage of trigger
points in supply chain
Technology / automation a
critical enabler of SCF
schemes
Supplier on-boarding,
KYC, AML etc
17. Approved payables is a buyer-led proposition by which the bank provides financing to a
clients’ suppliers by purchasing their Open Account receivables at a discount
Buyer centric solutions
Example and benefits for supplier finance solution
Buyer Supplier
Financial
institution
2 Receivable
purchase
offer
1 Payable /
Payment
instruction
Buyer Supplier
Financial
institution
3 Purchase
acceptance /
Sells receivable
4 Remits
funds
Buyer Supplier
Financial
institution
5 Disbursement of
payment;
settlement of
invoice
Day 2 Day 3 Day 60
• The supplier can immediately discount
the receivable
• Automatic discount is possible
• The bank remits the funds to the
supplier (same day or next day
payment
• The buyer funds a disbursement account
via account payable process at maturity
• The Bank debits the buyer’s
disbursement account for the full amount
of the payment on due date (e.g. Day 60)
• The Buyer approves supplier’s
invoice and electronically instructs
the bank to pay the supplier on a
future date
• The supplier is notified of a payment
from the buyer scheduled for a future
date (e.g. Day 60)
17
18. Seller centric solutions -
invoice discounting process flow
• 1 The supplier ships goods to the buyer
and produces an invoice
• 2 The supplier sends a request for
financing to the financial institution
• 2 The supplier sells it’s receivable of one or
more buyer to the financial institution
• 3 The financial institution remits funds to
the supplier (receivable minus a discount)
Buyer Supplier
Financial
institution
2 Receivable
purchase offer
/
Sells account
receivable
Buyer Supplier
Financial
institution
3 Remits
funds
(80%)
Day 3 Day 180
• 3 buyer pays the client (supplier)
at maturity
• 4 supplier forwards payment to
the financial institution at
maturity
• Or the financial institution gets
payment from the buyer(s)
3 Payment
at maturity
Receivables finance is a supplier-led proposition by which the bank provides financing
to the client (supplier/exporter) by purchasing their Open Account receivables at a
discount
1 goods
Payment at
maturity
18
19. SUPPLY CHAIN FINANCE MARKET
Closed 3-corner business model likely to evolve into open 4-corner model
BPO has a role to play here
Business
relationship
& liability
Buyer/
Importer
Seller/
Exporter
Service
Provider
Risk & processing
services
Financing
services
Routing and
Settlement
Production
(Market)
Distribution
(Client)
+
a/c
Processing
platform
Contract
+
a/c
• Focused on limited set of buyer-seller relationships
• Demand driven by cash rich importers
• Use of proprietary standards and channels
• Relationships managed by central Service Provider
• Significant supplier on-boarding issues
BPO
Buyer/
Importer
Seller/
Exporter
Exporter’s
bank
Importer’s
bank
Risk, financing &
processing
services
Risk, financing &
processing
services
Routing and
Settlement
Routing and
Settlement
Production
(Market)
Distribution
(Client)
Business
relationship
& liability
+
a/c
+
a/c
Processing
platform
Contract
• Supports partnership banking globally
• Applicable across the risk spectrum
• Open, interoperable rules and standards
• Relationships maintained by local banks
• Supplier on-boarding not an obstacle
Processing
platform
20. BPO Factoring Forfaiting
Automated versus
manual
Fully automated Manual Manual
Financing % of
transaction
up to 100% < 100% 100%
Availability across
transaction
lifecycle
Pre-shipment & post-
shipment
Post-shipment Post-shipment
Risk (1) Bank risk (impact on
capital reqts/cost)
Corporate risk Bank risk (impact on
capital reqts/ cost)
Risk (2) Transaction Portfolio Transaction
Recourse Without With/without Without
Track record Developing Established Established
Standardised
international rules
URBPO GRIF URF 800
COVER SLIDE (Full image)This is the title slide for your presentation. To change the image go to ‘Layout’ and select any of the BLUE_cover options. Do NOT insert any non-Misys images as this will dilute our visual identity.COVER TEXTThe title should always be in white (Arial 22pt bold)Sub titles are always welcome but should be underneath main title (Arial 22pt Non bold) Please make sure you insert the presenter’s name and job title (Arial 12pt bold)
SUB TITLE & CONTENT SLIDE (small image)This slide can be used:as an agenda slideas a page divider for different sections of your presentationto highlight key pointsTo change the image go to ‘Layout’ and select any of the WHITE_Sub Title options. Do NOT insert any non-Misys images as this will dilute our visual identity.SUB CONTENT TEXTThe title should always be in Misys Blue (Arial 22pt bold)Use the same font face and sizes on all slides. Arial = Black (18pt)Arial = Black (16pt) indented Level 1Arial = Black (14pt) indented Level 2Misys highlight colours are allowed but please use minimallyNB: The Misys colour palette is embedded into this PPT template. Please refer to the Misys Visual Identity Guidelines for more information on the Misys colour palette.
COVER SLIDE (Full image)This is the title slide for your presentation. To change the image go to ‘Layout’ and select any of the BLUE_cover options. Do NOT insert any non-Misys images as this will dilute our visual identity.COVER TEXTThe title should always be in white (Arial 22pt bold)Sub titles are always welcome but should be underneath main title (Arial 22pt Non bold) Please make sure you insert the presenter’s name and job title (Arial 12pt bold)
END SLIDE (Full image)This is the closing slide for your presentation. To change the image go to ‘Layout’ and select the same BLUE_End Slide option that you used for your cover slide. Do NOT insert any non-Misys images as this will dilute our visual identity.END SLIDE TEXT To change the message from THANK YOU simply re-type your text in this spaceYou can extend the blue text box in the Master slide if you need to include a longer message such as contact details for example