Despite challenges in recent years, the banking industry has continued innovating in financial supply chain management. Banks see tightening credit as both a short-term hurdle and long-term opportunity. While most cross-border trade is currently corporate-to-corporate, evidence suggests a significant portion will transition to bank-assisted models. Both corporations and some regulators are calling on banks to provide more innovative supply chain solutions.
1) A Bank Payment Obligation (BPO) provides the benefits of a letter of credit without manual processing by using SWIFT's Trade Services Utility to electronically match trade document data.
2) A BPO obligates one bank to pay another bank on a specified date if trade data matches, transferring risk from buyers to banks.
3) BPOs enable flexible financing, assure payment, and strengthen supply chains, while reducing costs through automated processing of electronic trade data.
This whitepaper aims to outline the key considerations that should factor in the assessment of financial extranet service providers and discusses the benefits expected of such considerations particularly in Asia.
Innovation In Banking: Hidden Opportunities in the Forces Propelling ChangeInfosys Finacle
With Darwin’s theory playing out in the last couple
of years, surviving financial institutions are
confronted with multiple challenges. On the
external front, banks are trying to: reclaim the trust
of increasingly strident, demanding consumers;
tackle competition from established and emerging
rivals and; comply with tougher mandates.
Internally, their biggest challenges include
adjusting to restructuring, consolidation and
improving operating efficiency. To top it all, the
quest for a competitive edge requires them to
imbibe best practices from peers and other
industries, and keep pace with new technologies.
The document discusses mobile payments in India and provides three key points:
1) Mobile payments in India are still developing, with limited adoption of mobile banking and payments, but high potential given India's large unbanked population and mobile penetration.
2) Critical success factors for mobile payments in India include accessibility, interoperability, affordability, assurance, and awareness in order to drive adoption.
3) International examples show that partnerships between telcos and banks may be most effective in driving growth in India, as each entity brings unique strengths to promoting adoption.
2009 marcus evans clearing&settlement finalChapadin
T2S and its practical implications for Investor Services will have implications for all industry participants in the post-trade value chain. The project functional scope of T2S is laying the foundation for the EU to compete with the rest of the world in capital markets. T2S will impact account management, lifecycle management, corporate actions reporting, securities financing, cash management, collateral management, product distribution, and data management. T2S will drive changes for investors, traders, central counterparty clearinghouses, custodians, central securities depositories, and how they interact across local and foreign markets.
Trade and Cash Convergence: The Integrated Transaction Banking PlatformCognizant
The document discusses the drivers influencing transaction banking and the need for an integrated transaction banking platform. It outlines four levels of maturity for an integrated system, with level 5 being the most mature. It emphasizes that banks need to determine the right maturity level based on their target clients and competitive positioning. Factors like existing legacy systems will also impact the implementation strategy for developing an integrated platform.
This document provides an agenda and overview for an ICC briefing on supply chain finance and the Uniform Rules for Bank Payment Obligation (UR BPO). The briefing will update trade bankers on the progress of the UR BPO rules, share next steps ahead of their formal adoption in April 2013, and encourage industry participation. The agenda includes introductions from banking commission representatives, an explanation of the new UR BPO, the ICC BPO project timeline and deliverables, accounting and capital treatment considerations, the corporate need for new open account trade rules, and a BPO case study from BP Chemicals. The ICC Banking Commission is a leading global rulemaking body for the banking industry focused on trade finance rules and guidelines.
Retail Distribution Review: Preparing Insurance IT for Compliance and Strateg...Cognizant
The Retail Distribution Review offers a significant compliance challenge for UK insurers and advisors. CIOs must prepare by ensuring they have the right enabling technologies to support changing distribution strategies.
1) A Bank Payment Obligation (BPO) provides the benefits of a letter of credit without manual processing by using SWIFT's Trade Services Utility to electronically match trade document data.
2) A BPO obligates one bank to pay another bank on a specified date if trade data matches, transferring risk from buyers to banks.
3) BPOs enable flexible financing, assure payment, and strengthen supply chains, while reducing costs through automated processing of electronic trade data.
This whitepaper aims to outline the key considerations that should factor in the assessment of financial extranet service providers and discusses the benefits expected of such considerations particularly in Asia.
Innovation In Banking: Hidden Opportunities in the Forces Propelling ChangeInfosys Finacle
With Darwin’s theory playing out in the last couple
of years, surviving financial institutions are
confronted with multiple challenges. On the
external front, banks are trying to: reclaim the trust
of increasingly strident, demanding consumers;
tackle competition from established and emerging
rivals and; comply with tougher mandates.
Internally, their biggest challenges include
adjusting to restructuring, consolidation and
improving operating efficiency. To top it all, the
quest for a competitive edge requires them to
imbibe best practices from peers and other
industries, and keep pace with new technologies.
The document discusses mobile payments in India and provides three key points:
1) Mobile payments in India are still developing, with limited adoption of mobile banking and payments, but high potential given India's large unbanked population and mobile penetration.
2) Critical success factors for mobile payments in India include accessibility, interoperability, affordability, assurance, and awareness in order to drive adoption.
3) International examples show that partnerships between telcos and banks may be most effective in driving growth in India, as each entity brings unique strengths to promoting adoption.
2009 marcus evans clearing&settlement finalChapadin
T2S and its practical implications for Investor Services will have implications for all industry participants in the post-trade value chain. The project functional scope of T2S is laying the foundation for the EU to compete with the rest of the world in capital markets. T2S will impact account management, lifecycle management, corporate actions reporting, securities financing, cash management, collateral management, product distribution, and data management. T2S will drive changes for investors, traders, central counterparty clearinghouses, custodians, central securities depositories, and how they interact across local and foreign markets.
Trade and Cash Convergence: The Integrated Transaction Banking PlatformCognizant
The document discusses the drivers influencing transaction banking and the need for an integrated transaction banking platform. It outlines four levels of maturity for an integrated system, with level 5 being the most mature. It emphasizes that banks need to determine the right maturity level based on their target clients and competitive positioning. Factors like existing legacy systems will also impact the implementation strategy for developing an integrated platform.
This document provides an agenda and overview for an ICC briefing on supply chain finance and the Uniform Rules for Bank Payment Obligation (UR BPO). The briefing will update trade bankers on the progress of the UR BPO rules, share next steps ahead of their formal adoption in April 2013, and encourage industry participation. The agenda includes introductions from banking commission representatives, an explanation of the new UR BPO, the ICC BPO project timeline and deliverables, accounting and capital treatment considerations, the corporate need for new open account trade rules, and a BPO case study from BP Chemicals. The ICC Banking Commission is a leading global rulemaking body for the banking industry focused on trade finance rules and guidelines.
Retail Distribution Review: Preparing Insurance IT for Compliance and Strateg...Cognizant
The Retail Distribution Review offers a significant compliance challenge for UK insurers and advisors. CIOs must prepare by ensuring they have the right enabling technologies to support changing distribution strategies.
From distribution-channel-from-distribution-channel-to2569Bryk Miroslaw
The document discusses distribution systems and supply chain management. It defines distribution channels as systems of interdependent organizations that build value as products move through. Supply chain management involves coordinating flows of materials, information, and finances among channel members. E-business allows more efficient management of information flows. The document then discusses challenges like the bullwhip effect and how information technologies can help address them.
This document discusses business agility in lending through business process management (BPM). It notes challenges with traditional process management like rigid processes and lack of visibility. BPM is presented as a way to bring order to business chaos by standardizing processes, leveraging existing systems and data, and providing real-time visibility and process control. The document outlines key BPM capabilities like modeling, monitoring, automation, and optimization. It also discusses how rules and events can enable optimized BPM solutions through automated decision making. Finally, it discusses extending visibility with business activity monitoring.
The document discusses the impact of new legislation that will lower debit card interchange fees for utilities. It explains that:
1) New rules from the Federal Reserve will result in lower interchange fees for debit card transactions, reducing costs for utilities and other businesses.
2) While some savings may be passed to consumers, cost reductions typically go to company profits rather than lower prices.
3) The growth of debit card use, especially online, means utilities need to accept card payments to serve customers, but lower fees will make this more affordable.
In these days of brutal budget cuts, hard-won sales often come with a hefty price tag
attached. The cost of sale for a number of the top 100 financial technology companies
has escalated to up to 70% of all revenues and potentially well over 100% of new
revenues. E2W analyses the true impact of tighter budgets on traditional sales and
marketing strategies and asks how vendors can adapt their approach accordingly.
After surviving the financial meltdown in 2008, the banking industry finds itself at a
critical juncture. A slow economy restrains the potential for increasing revenue,
while new complex regulations add high levels of uncertainty to the industry.
Accelerating Financial Inclusion Through Innovative Channels (Dec 2009)asaxen1
The document discusses 10 obstacles that are preventing microfinance institutions (MFIs) from deploying alternative distribution channels like ATMs, mobile banking, and banking agents. It outlines these 10 challenges and provides solutions to help MFIs and other stakeholders overcome the hurdles to accelerating financial inclusion through innovative channels. Specifically, it addresses obstacles related to the emerging nature of alternative channels, a lack of strategic focus, high costs, technology challenges, regulations, partnerships, customer education, liquidity management, governance, and staff capacity. The document aims to provide a roadmap to help more effectively reach low-income groups using new delivery systems.
This document discusses strategies for public companies to cultivate shareholder loyalty through their annual reports. It provides tips on using the annual report to tell a company's story, engage shareholders, and communicate strategy. While notice and access rules allow electronic delivery, the article advocates for maintaining paper annual reports to reach all shareholders. Different annual report formats like traditional reports, 10K wraps, and online versions are examined.
Banks must focus on measuring and optimizing customer lifecycle value (CLV) rather than just satisfying current needs. CLV considers both current and potential future value over a customer's lifetime. To do this, banks need to implement frameworks to accurately measure costs associated with each customer as well as their current, potential, and influencer value to properly segment and serve customers according to their total value. With CLV analysis, banks can improve profitability by focusing on high-value relationships and using influencer customers to promote additional sales.
A Broker-based Framework for Integrated SLA-Aware SaaS Provisioningijccsa
In the service landscape, the issues of service selection, negotiation of Service Level Agreements (SLA), and
SLA-compliance monitoring have typically been used in separate and disparate ways, which affect the
quality of the services that consumers obtain from their providers. In this work, we propose a broker-based
framework to deal with these concerns in an integrated mannerfor Software as a Service (SaaS)
provisioning. The SaaS Broker selects a suitable SaaS provider on behalf of the service consumer by using
a utility-driven selection algorithm that ranks the QoS offerings of potential SaaS providers. Then, it
negotiates the SLA terms with that provider based on the quality requirements of the service consumer. The
monitoring infrastructure observes SLA-compliance during service delivery by using measurements
obtained from third-party monitoring services. We also define a utility-based bargaining decision model
that allows the service consumer to express her sensitivity for each of the negotiated quality attributes and
to evaluate the SaaS provider offer in each round of negotiation. A use-case with few quality attributes and
their respective utility functions illustrates the approach.
Trends in retail_banking_channels__improving_client_service_and_operating_costsvoland55555
Banks are increasingly focusing on five key trends across retail banking channels to improve client service and reduce costs:
1. Increased use of online platforms like Web 2.0 and social media to better engage with clients.
2. Investing in mobile banking solutions to drive innovation and lower costs by addressing customer needs for convenient access.
3. Pushing more activities online to reduce branch operating expenses and put the online channel on equal footing with branches.
4. Achieving seamless multi-channel integration to provide a superior customer experience and competitive advantage.
5. Leveraging customer analytics to improve relationships and understand client behaviors and expectations across channels.
The article compares alternate methods for calculating CVA capital charges under Basel III. It discusses the standardized formula approach and advanced Monte Carlo simulation approach. The standardized approach can be interpreted as a 1-year 99% CVA VaR calculation under normal assumptions. The advanced approach requires calculating 10-day 99% CVA VaR over a 1-year period and stressed 1-year period. Test results on sample portfolios show the advanced approach provides significantly more capital relief when hedges are used compared to the standardized approach. The difference in capital charges between methods depends on the specific portfolio.
1) The document discusses how banks are investing heavily in information technologies and telecommunications to provide more sophisticated services to clients through increased mobility and internet banking.
2) It highlights how HSBC is investing in videoconferencing and mobile technologies to improve collaboration and efficiency.
3) Michael Page is outsourcing its infrastructure and expanding use of collaboration technologies like Cisco to improve communications.
The document discusses trends in online and mobile payments. It notes that mobile payments are expected to reach $1 trillion by 2014 as smartphone adoption increases. There are many types of mobile payment methods, including mobile wallets, mobile point-of-sale, payment platforms, carrier billing, and closed-loop systems. NFC technology enables fast and secure card-present payments directly from phones but requires upgrades to handsets and point-of-sale terminals to see broad use. Overall mobile payments are growing rapidly but challenges remain around technology adoption and business models.
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Building scope...spirecorporate
This document discusses approaches to broadening adoption and usage of mobile payments in emerging Asia. It argues that scope and scale are important, as networks gain more value as more users join. Broad adoption requires recruiting across income segments and including those with purchasing power. Getting funds into the system and keeping them there reduces costs. Leveraging existing networks and finding the right partnerships can help scale up new services. Challenges include aligning interests over time between different players and sectors.
Bond Consulting Group provides consulting services to companies to help improve their operations and sales strategies. They have worked with clients in various industries including toy retail, jewelry manufacturing and distribution, industrial goods manufacturing, and tea retail. Their services include identifying cost savings opportunities, researching new distribution channels, benchmarking against competitors, and creating marketing plans and feasibility studies. They are currently looking to take on two new clients in January 2009.
The document provides details about the Trade and Supply Chain programme at Sibos 2012 in Osaka, Japan. It outlines the conference themes, sessions, speakers and topics that will be covered related to innovations in trade, supply chain finance, open account trade, and the adoption of new standards like MT 798 and the Bank Payment Obligation. The programme includes main conference sessions, case studies, community sessions, an open theatre, and networking opportunities for attendees to learn about the latest developments and connect with industry leaders.
Bank payment obligation (BPO) brochure from ICCAndré Casterman
The document discusses the Bank Payment Obligation (BPO), a new solution for supply chain finance being developed by SWIFT and the ICC Banking Commission. The BPO will provide an alternative means of settlement in international trade, offering the benefits of letters of credit in an automated environment. It involves an irrevocable undertaking by one bank to pay another bank on a specified date if electronic data matching is successful. The BPO is aimed at streamlining trade finance through standardized rules and messages. Global banks and corporations are supporting its development to facilitate world trade growth.
BPO Press Coverage - www.GTnews.com - January 2012André Casterman
The document discusses the bank payment obligation (BPO), a new electronic trade finance instrument. It provides 3 key points:
1. The BPO allows banks to provide trade finance services like payments and financing based on matching electronic data rather than physical documents. This improves efficiency over traditional letters of credit.
2. Governance of BPO rules is transferring from SWIFT to the International Chamber of Commerce (ICC), which will develop industry-standard rules to support broader adoption.
3. BPOs can benefit corporations by improving cash flow forecasting and enabling services like pre-shipment financing, while also reducing costs compared to letters of credit or open accounts. Wider adoption depends on education and demand from
This document provides an agenda and overview for a seminar on extending trade business using new ICC and SWIFT standards for supply chain finance. The seminar will discuss SWIFT's innovations in multi-banking trade standards, ICC's new Bank Payment Obligation instrument and benefits for corporates, first BPO case studies and live BPO banks, the corporate perspective on BPO, and how to get started with ICC and ISO 20022 standards. Various speakers will discuss topics including trade volumes increasing to $48.5 trillion by 2025 and the opportunity for banks to expand financing services from traditional letters of credit to the new BPO which enables bank-assisted open account trade.
This document discusses whether Islamic economic systems are an obstacle to development. It outlines two explanations for the historical economic backwardness of Muslim-majority regions: 1) an Islamic mindset that discourages development, and 2) lack of institutions needed for development. However, the document argues that Islamic teachings actually promote concepts like private property and competitive markets that support development. It claims the real obstacles were institutional deficits from the decline of the Ottoman Empire and repressive policies of 20th century regimes, not Islamic law itself. The only potential obstacle discussed is Islam's prohibition of interest/riba, but the document notes Islamic jurists developed complex alternative financing structures.
BPO session featuring DB, JPM, Bank of China and Bank of Tokyo MitsubishiAndré Casterman
The document provides an update on the Bank Payment Obligation (BPO) project led by the ICC Banking Commission. It outlines the objectives of developing BPO rules as a new industry-wide instrument to facilitate electronic matching and payment of international trade transactions. The agenda includes presentations from SWIFT, banks, and technology partners on how BPO can complement existing trade instruments, support supply chain finance, and leverage ISO 20022 standards for structured data exchange. Tentative timelines are provided for drafting and approving BPO rules by 2013.
The document discusses the adoption of SWIFT's MT798 standards for facilitating multi-banking in trade finance. It outlines that major corporates and banks are adopting the standards, and that leading trade finance vendors have solutions that are compliant. The standards help enable end-to-end connectivity between parties and avoid issues of proprietary formats. They also provide benefits around costs, legal complexity, and know-your-customer processes for both banks and corporates.
From distribution-channel-from-distribution-channel-to2569Bryk Miroslaw
The document discusses distribution systems and supply chain management. It defines distribution channels as systems of interdependent organizations that build value as products move through. Supply chain management involves coordinating flows of materials, information, and finances among channel members. E-business allows more efficient management of information flows. The document then discusses challenges like the bullwhip effect and how information technologies can help address them.
This document discusses business agility in lending through business process management (BPM). It notes challenges with traditional process management like rigid processes and lack of visibility. BPM is presented as a way to bring order to business chaos by standardizing processes, leveraging existing systems and data, and providing real-time visibility and process control. The document outlines key BPM capabilities like modeling, monitoring, automation, and optimization. It also discusses how rules and events can enable optimized BPM solutions through automated decision making. Finally, it discusses extending visibility with business activity monitoring.
The document discusses the impact of new legislation that will lower debit card interchange fees for utilities. It explains that:
1) New rules from the Federal Reserve will result in lower interchange fees for debit card transactions, reducing costs for utilities and other businesses.
2) While some savings may be passed to consumers, cost reductions typically go to company profits rather than lower prices.
3) The growth of debit card use, especially online, means utilities need to accept card payments to serve customers, but lower fees will make this more affordable.
In these days of brutal budget cuts, hard-won sales often come with a hefty price tag
attached. The cost of sale for a number of the top 100 financial technology companies
has escalated to up to 70% of all revenues and potentially well over 100% of new
revenues. E2W analyses the true impact of tighter budgets on traditional sales and
marketing strategies and asks how vendors can adapt their approach accordingly.
After surviving the financial meltdown in 2008, the banking industry finds itself at a
critical juncture. A slow economy restrains the potential for increasing revenue,
while new complex regulations add high levels of uncertainty to the industry.
Accelerating Financial Inclusion Through Innovative Channels (Dec 2009)asaxen1
The document discusses 10 obstacles that are preventing microfinance institutions (MFIs) from deploying alternative distribution channels like ATMs, mobile banking, and banking agents. It outlines these 10 challenges and provides solutions to help MFIs and other stakeholders overcome the hurdles to accelerating financial inclusion through innovative channels. Specifically, it addresses obstacles related to the emerging nature of alternative channels, a lack of strategic focus, high costs, technology challenges, regulations, partnerships, customer education, liquidity management, governance, and staff capacity. The document aims to provide a roadmap to help more effectively reach low-income groups using new delivery systems.
This document discusses strategies for public companies to cultivate shareholder loyalty through their annual reports. It provides tips on using the annual report to tell a company's story, engage shareholders, and communicate strategy. While notice and access rules allow electronic delivery, the article advocates for maintaining paper annual reports to reach all shareholders. Different annual report formats like traditional reports, 10K wraps, and online versions are examined.
Banks must focus on measuring and optimizing customer lifecycle value (CLV) rather than just satisfying current needs. CLV considers both current and potential future value over a customer's lifetime. To do this, banks need to implement frameworks to accurately measure costs associated with each customer as well as their current, potential, and influencer value to properly segment and serve customers according to their total value. With CLV analysis, banks can improve profitability by focusing on high-value relationships and using influencer customers to promote additional sales.
A Broker-based Framework for Integrated SLA-Aware SaaS Provisioningijccsa
In the service landscape, the issues of service selection, negotiation of Service Level Agreements (SLA), and
SLA-compliance monitoring have typically been used in separate and disparate ways, which affect the
quality of the services that consumers obtain from their providers. In this work, we propose a broker-based
framework to deal with these concerns in an integrated mannerfor Software as a Service (SaaS)
provisioning. The SaaS Broker selects a suitable SaaS provider on behalf of the service consumer by using
a utility-driven selection algorithm that ranks the QoS offerings of potential SaaS providers. Then, it
negotiates the SLA terms with that provider based on the quality requirements of the service consumer. The
monitoring infrastructure observes SLA-compliance during service delivery by using measurements
obtained from third-party monitoring services. We also define a utility-based bargaining decision model
that allows the service consumer to express her sensitivity for each of the negotiated quality attributes and
to evaluate the SaaS provider offer in each round of negotiation. A use-case with few quality attributes and
their respective utility functions illustrates the approach.
Trends in retail_banking_channels__improving_client_service_and_operating_costsvoland55555
Banks are increasingly focusing on five key trends across retail banking channels to improve client service and reduce costs:
1. Increased use of online platforms like Web 2.0 and social media to better engage with clients.
2. Investing in mobile banking solutions to drive innovation and lower costs by addressing customer needs for convenient access.
3. Pushing more activities online to reduce branch operating expenses and put the online channel on equal footing with branches.
4. Achieving seamless multi-channel integration to provide a superior customer experience and competitive advantage.
5. Leveraging customer analytics to improve relationships and understand client behaviors and expectations across channels.
The article compares alternate methods for calculating CVA capital charges under Basel III. It discusses the standardized formula approach and advanced Monte Carlo simulation approach. The standardized approach can be interpreted as a 1-year 99% CVA VaR calculation under normal assumptions. The advanced approach requires calculating 10-day 99% CVA VaR over a 1-year period and stressed 1-year period. Test results on sample portfolios show the advanced approach provides significantly more capital relief when hedges are used compared to the standardized approach. The difference in capital charges between methods depends on the specific portfolio.
1) The document discusses how banks are investing heavily in information technologies and telecommunications to provide more sophisticated services to clients through increased mobility and internet banking.
2) It highlights how HSBC is investing in videoconferencing and mobile technologies to improve collaboration and efficiency.
3) Michael Page is outsourcing its infrastructure and expanding use of collaboration technologies like Cisco to improve communications.
The document discusses trends in online and mobile payments. It notes that mobile payments are expected to reach $1 trillion by 2014 as smartphone adoption increases. There are many types of mobile payment methods, including mobile wallets, mobile point-of-sale, payment platforms, carrier billing, and closed-loop systems. NFC technology enables fast and secure card-present payments directly from phones but requires upgrades to handsets and point-of-sale terminals to see broad use. Overall mobile payments are growing rapidly but challenges remain around technology adoption and business models.
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Building scope...spirecorporate
This document discusses approaches to broadening adoption and usage of mobile payments in emerging Asia. It argues that scope and scale are important, as networks gain more value as more users join. Broad adoption requires recruiting across income segments and including those with purchasing power. Getting funds into the system and keeping them there reduces costs. Leveraging existing networks and finding the right partnerships can help scale up new services. Challenges include aligning interests over time between different players and sectors.
Bond Consulting Group provides consulting services to companies to help improve their operations and sales strategies. They have worked with clients in various industries including toy retail, jewelry manufacturing and distribution, industrial goods manufacturing, and tea retail. Their services include identifying cost savings opportunities, researching new distribution channels, benchmarking against competitors, and creating marketing plans and feasibility studies. They are currently looking to take on two new clients in January 2009.
The document provides details about the Trade and Supply Chain programme at Sibos 2012 in Osaka, Japan. It outlines the conference themes, sessions, speakers and topics that will be covered related to innovations in trade, supply chain finance, open account trade, and the adoption of new standards like MT 798 and the Bank Payment Obligation. The programme includes main conference sessions, case studies, community sessions, an open theatre, and networking opportunities for attendees to learn about the latest developments and connect with industry leaders.
Bank payment obligation (BPO) brochure from ICCAndré Casterman
The document discusses the Bank Payment Obligation (BPO), a new solution for supply chain finance being developed by SWIFT and the ICC Banking Commission. The BPO will provide an alternative means of settlement in international trade, offering the benefits of letters of credit in an automated environment. It involves an irrevocable undertaking by one bank to pay another bank on a specified date if electronic data matching is successful. The BPO is aimed at streamlining trade finance through standardized rules and messages. Global banks and corporations are supporting its development to facilitate world trade growth.
BPO Press Coverage - www.GTnews.com - January 2012André Casterman
The document discusses the bank payment obligation (BPO), a new electronic trade finance instrument. It provides 3 key points:
1. The BPO allows banks to provide trade finance services like payments and financing based on matching electronic data rather than physical documents. This improves efficiency over traditional letters of credit.
2. Governance of BPO rules is transferring from SWIFT to the International Chamber of Commerce (ICC), which will develop industry-standard rules to support broader adoption.
3. BPOs can benefit corporations by improving cash flow forecasting and enabling services like pre-shipment financing, while also reducing costs compared to letters of credit or open accounts. Wider adoption depends on education and demand from
This document provides an agenda and overview for a seminar on extending trade business using new ICC and SWIFT standards for supply chain finance. The seminar will discuss SWIFT's innovations in multi-banking trade standards, ICC's new Bank Payment Obligation instrument and benefits for corporates, first BPO case studies and live BPO banks, the corporate perspective on BPO, and how to get started with ICC and ISO 20022 standards. Various speakers will discuss topics including trade volumes increasing to $48.5 trillion by 2025 and the opportunity for banks to expand financing services from traditional letters of credit to the new BPO which enables bank-assisted open account trade.
This document discusses whether Islamic economic systems are an obstacle to development. It outlines two explanations for the historical economic backwardness of Muslim-majority regions: 1) an Islamic mindset that discourages development, and 2) lack of institutions needed for development. However, the document argues that Islamic teachings actually promote concepts like private property and competitive markets that support development. It claims the real obstacles were institutional deficits from the decline of the Ottoman Empire and repressive policies of 20th century regimes, not Islamic law itself. The only potential obstacle discussed is Islam's prohibition of interest/riba, but the document notes Islamic jurists developed complex alternative financing structures.
BPO session featuring DB, JPM, Bank of China and Bank of Tokyo MitsubishiAndré Casterman
The document provides an update on the Bank Payment Obligation (BPO) project led by the ICC Banking Commission. It outlines the objectives of developing BPO rules as a new industry-wide instrument to facilitate electronic matching and payment of international trade transactions. The agenda includes presentations from SWIFT, banks, and technology partners on how BPO can complement existing trade instruments, support supply chain finance, and leverage ISO 20022 standards for structured data exchange. Tentative timelines are provided for drafting and approving BPO rules by 2013.
The document discusses the adoption of SWIFT's MT798 standards for facilitating multi-banking in trade finance. It outlines that major corporates and banks are adopting the standards, and that leading trade finance vendors have solutions that are compliant. The standards help enable end-to-end connectivity between parties and avoid issues of proprietary formats. They also provide benefits around costs, legal complexity, and know-your-customer processes for both banks and corporates.
The document discusses facilitating multi-banking solutions in documentary trade finance for multinational corporations, outlining challenges corporations face with traditional trade instruments when working with multiple banks and the rationale for adopting standardized multi-banking solutions. It provides an overview of the role of standards bodies like ICC and SWIFT, the portfolio of industry standards for trade finance instruments, and best practices for corporations implementing multi-banking solutions using the MT 798 standards.
SWIFT Secretariat provides administrative and project management support
Market adoption of the BPO 20
Conclusion
- BPO adoption growing steadily with 45 banking groups and 111 BIC8s
- 4 banks live, 12 ready for live use
- 77 banking groups and 181 BIC8s/BIC11s reachable on TSU
- ICC and SWIFT working together to establish BPO as industry standard
- BPO Working Group driving adoption through drafting, education and commercialisation
- Growing number of certified trade platforms supporting BPO
- Multi-banking on TSU enabling new trade finance opportunities
Thank you for your interest in the BPO. Please contact
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms for those who already suffer from conditions like anxiety and depression.
The document outlines the agenda and components for starting and running a business. It discusses establishing honesty, utilizing scripture, and living entrepreneurially. It also covers the anatomy of a business including starting with a vision and business plan, growing through client identification and team building, and marketing with a marketing plan and social media. Additionally, it discusses the core elements of business like business structure and type, as well as location and name. Finally, it provides information on a one-page business plan and resources and tools for entrepreneurs.
"Q1, 2011: creating a framework for consumer-led engagement (Wavemetrix) -...Retelur Marketing
Informe realizado por Wavemetrix perteneciente al primer trimestre de 2011, el cual analiza el uso de los medios sociales por parte de las marcas y sus sinergias en el camino a la conversión a compra. (inglés).
"Puedes descargar este informe desde la docuteca digital del blog de Retelur: http://bit.ly/Retelur_Informes"
Traditional banking is facing its biggest challenge in over a generation due to factors like increased regulation, public distrust, and new digital competitors. A new tipping point has been reached where digital will play a pivotal role. To create value going forward, banks need to focus on building customer relationships and engagement through digital offerings. Younger customers especially expect banking to be available through mobile and online channels, so banks must enhance their digital capabilities to attract these customers and remain relevant in the future.
Fundtech E-invoicing Provides New Adventures for CreditFundtechFSC
With credit availability remaining tight following the financial crisis, banks and corporations alike are more attuned to the financing opportunities available linked to supply chain transactions. With the transparency of trade transactions and the link between funding and trade activities, Supply Chain Finance (SCF) lessens the risk associated with traditional lending. Electronic invoicing, presentment and payment (EIPP) systems can amplify the many benefits of Supply Chain Finance by automating a process that traditionally has been hampered by slow, paper-based manual methods. The Supply Chain Finance market in the UK alone grew from about £100 million 2008 to £1Bn in 2010, with the growth expected to continue through 2011. This paper looks at how the continuing growth of E-Invoicing can enable and facilitate the Supply Chain Finance market - and how financing can be a key driver for adopting E-Invoicing
Fundtech white paper, e invoicing provides new avenues for creditFriso de Jong
1) Electronic invoicing enables new forms of supply chain financing by providing banks visibility into trade transactions and relationships.
2) E-invoicing automates supply chain financing structures like factoring and invoice discounting, improving processes and risk analysis.
3) Integrating e-invoicing with supply chain financing provides opportunities for new financing products focused on payables and receivables.
Deutsche Bank sponsored interview 2011 Treasury Perspectivesbenpoolewriter
The role of the corporate treasurer and treasury department has evolved significantly following the credit crisis. Treasurers now focus on cash flow optimization, supply chain sustainability, and efficiency to maximize working capital with restricted liquidity. This has increased the authority and responsibilities of treasury departments. Technology enhancements and process improvements continue to be priorities to streamline operations and provide customized solutions through integrated platforms. Deutsche Bank focuses on delivering high quality client services and solutions through its technology and customer-centric approach.
Thought Paper:Four Strategies to Build the Smarter BankInfosys Finacle
Robert Kiyosaki, American investor and author (of Rich Dad Poor Dad fame), hits the nail on the head when he says, “You have to be smart. The easy days are over.”
As consumers go about trying to manage their money, there is an opportunity for banks to show them that they’re not alone – by being the ideal financial partner that listens, understands needs, shows respect, acts with integrity, serves with a purpose and exceeds expectations through its products, services and financial guidance.
In other words, by becoming a smarter bank.
How Successful Banks Build Their Innovation StrategyInfosys Finacle
Corporate and retail banks are facing competition
from new entrants and innovative business
models. If that wasn't enough, shrinking margins
and tighter regulatory requirements are adding to
the pressure. Going forward, innovation is
perceived as the key to growth and competitive
differentiation. Only those banks that can
successfully develop new products, services and
channels in response to the changed market
environment will survive.
Rebuilding Customer Trust in Retail BankingNoreen Buckley
An IBM White Paper by Mike Hobday Banking Practice Leader
Global Business Services UK
and Ireland
IBM & Charles Spinosa
Group Director & Leader Marketing Practices VISION Consulting
Insights on How to Run a Credit Union: Blending new technologies with traditi...NAFCU Services Corporation
Hear from five thought leaders as they discuss the opportunities and obstacles facing the financial services industry today as it moves firmly into the digital age.Chris Swecker of Swecker Enterprises covers the current state of fraud in banking and explains how data can be used to mitigate it; Jim Goodnight, SAS CEO, explains how a high-performance banking technology framework can provide the next answer to key business questions; Jim Davis, Senior Vice President and Chief Marketing Officer of SAS, shares his insights on why understanding customers' needs will be critical to thriving in the current economic climate; Nobel Laureate Myron Scholes and Alastair Sim, Senior Director of Global Marketing at SAS, address past risk management techniques and how they should evolve. Learn more at http://www.nafcu.org/sas
1. Digital technologies are transforming supply chain finance by improving infrastructure, standardizing interfaces, and utilizing managed services and platforms. This enables more efficient information sharing and access to working capital for suppliers.
2. New entrants in supply chain finance are utilizing data analytics and digital platforms to better assess risk and provide alternative financing structures for suppliers in areas like dynamic discounting and factoring.
3. Key actors in supply chain finance include suppliers, buyers, distributors, and retailers, with roles that can vary depending on the specific transaction within the supply chain. Mapping these actors is important for understanding financing opportunities and obligations.
Finacle - Agency Banking: New Frontiers In Financial InclusionInfosys Finacle
Finacle thought paper identifies agency banking as a new frontier in financial inclusion. It highlights the important features and benefits of banks emerging with non-financial institutions in order to drive business growth.
Indian retailers are struggling as reform hopes are dashed. Future Group, India's largest supermarket operator, is selling assets and scaling back expansion plans. While India has a large population and growing affluence, competition is limited and the retail environment remains tough. A small reform like allowing foreign multi-brand retailers could boost moods, especially for supermarket owners, by benefiting farmers and small producers.
1) The document discusses how banks are investing heavily in information technologies and telecommunications to provide more sophisticated services to clients through increased mobility and internet banking.
2) It highlights how HSBC is investing in videoconferencing and mobile technologies to improve collaboration and efficiency.
3) Michael Page is outsourcing its infrastructure and expanding use of collaboration technologies like Cisco to improve communications.
Swim or Sink: Essential Insights for Staying Afloat in the Banking Market PlaceCatherine Lynch
Results of a survey sponsored by SAP conducted by Pierre Audoin Conseil with global banks to highlight what innovations they are adopting to stay competitive and stay afloat.
This document discusses the value and necessity of technical publications in the banking, financial services, and insurance industries. It notes that these industries require documentation for complex applications, processes, products, compliance, and training. Outsourcing technical documentation can help cut costs while ensuring quality. TWB is presented as a leader in technical documentation outsourcing with experience serving major clients through concise, accurate documentation of processes and products.
How Cloud Computing Impacts Trade FinanceCognizant
Cloud computing can accelerate the recovery of trade finance, enabling banks to build a strong architecture for maximizing profitability by making such services more affordable and accessible to customers.
The document proposes an alternative model for transforming the UK banking industry by separating it into three components based on business lifecycle roles: banking business managers, transaction processing factories, and deal origination entities. This would reframe the operating model to increase transparency, competition, and customer choice. It outlines how each component could function and the IT implications, arguing the proposed new construct is feasible given existing industry practices, solutions, and regulatory support.
This document summarizes the scenario of the "Global Ivy League" of banks from 2007-2020. It describes how large traditional banks faced challenges in keeping up with growth and expansion in the period from 2007-2010, but were ultimately able to overcome these challenges by leveraging their scale, trustworthiness, and technology investments. The banks entrenched their dominance through customer inertia and economies of scale, despite the agility of new players in adopting technological innovation.
Correspondent banks are facing economic challenges and increased competition that threaten the profitability of trade finance services. To adapt, banks need to provide competitive pricing, deliver value across the supply chain rather than just risk mitigation, and improve efficiency through measures like right-sizing, business intelligence tools, and centralized operations. Additionally, banks must ensure they can meet growing regulatory burdens like anti-money laundering requirements imposed by rules like the EU directive and Patriot Act, which significantly increase costs. As regulations and capital rules tighten under Basel III, some banks may exit correspondent banking altogether due to the heavy cost of compliance.
Correspondent banks are facing economic challenges and increased competition that threaten the profitability of trade finance services. To adapt, banks need to provide competitive pricing, deliver value across the supply chain rather than just risk mitigation, and improve efficiency through measures like right-sizing, business intelligence tools, and centralized operations. Additionally, banks must ensure they can meet growing regulatory burdens like anti-money laundering requirements imposed by regulations like the EU directive and Patriot Act. The future of correspondent banking may involve further consolidation as smaller banks face higher capital requirements, and "experience banking" that integrates services into customers' workflows.
The document discusses the value of technical publications in the banking, financial services, and insurance (BFSI) industry. It notes that technical publications are essential for BFSI companies to provide quality deliverables and training to clients. It also discusses challenges such as documenting complex banking processes and outlines how TWB provides comprehensive documentation solutions to address these challenges. TWB has helped BFSI companies meet mergers and acquisitions goals through process documentation and program management expertise.
Similar to Opinion Piece Supply Chain Finance and ICC Rules (20)
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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.
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Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
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Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
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1. espite the crisis of
D
the past two years,
the industry has
continued to innovate
in financial supply chain
management to enhance value for trading
counterparties and improve efficiency.
Banks recognise that the tightening
of credit globally represents both a
short-term challenge and a medium-
term business opportunity. Although
the majority of cross-border open
account trade is conducted corporate-
to-corporate, evidence suggests that a
significant percentage will migrate to a
bank-assisted model over the coming
years. Corporates and in some countries
regulators have voiced their demand
for banks to provide greater innovation
through bank-intermediated supply chain
solutions.
According to various studies, there is
at least USD 400 billion trapped in the
working capital cycle of corporates.
Historically, cash management and
trade have been housed in separate
departments within banks. Indeed, there
has been limited attempt to align the
centralised management of cash with
the often decentralised management of
Collaborative supply chain finance
A few more steps to go
In recent decades, banks have successfully developed industry-wide collaborative
solutions in traditional trade finance. André Casterman, head of trade and supply
chain, SWIFT, argues that the challenge now is to extend those best practices to
supply chain finance and deliver improved services to buyers and suppliers.
18 Dialogue Q4 2010 Join the dialogue at: www.swiftcommunity.net/dialogue
2. Opinion – André Casterman, SWIFT
A set of ICC rules
Figure 1: BPO information flows
governing collaborative
supply chain finance will
be a key milestone for the
trade banks as such rules
will offer a legally binding,
valid and enforceable
risk mitigation instrument
for financing open
account transactions.
André Casterman, SWIFT
Physical presentation of Electronic presentation of
compliant documents compliant data
trade. However, from a working capital The voice of the customers buyer and not the supplier. As a result a
perspective, cash and trade clearly Declining to accept paper and invoices buyer-driven receivable programme is less
converge in their impact on the cash in PDF format is already a reality in some complex than other structures and funding
conversion cycle (Days Sales Outstanding countries. Large corporations such as is likely to be less expensive for suppliers
+ Days Inventory Outstanding – Days UPM and Kone are Nordic examples of where the buyer’s credit is stronger than
Payables Outstanding). It is estimated buyers that have publicly announced that that of its suppliers. The benefit to suppliers
that companies that optimise their cash they will no longer accept paper from their also feeds back as a benefit to buyers in
conversion cycle can reduce their working suppliers. Electronic invoicing has proven terms of better relationships with suppliers
capital requirements by as much as 40%. its value but only represents a first step to and a reduction in possible financial
There is no doubt that supply chain link up the financial supply chain with the weakness/instability of suppliers. The study
finance represents a major opportunity for physical supply chain, as transaction data also concluded that supply chain finance
banks to generate revenue and increase is automatically reconciled with inventories. structures have developed to suit a variety
liquidity in the market. It represents the When intermediated via banks, electronic of needs and that no one structure should
most prominent example of open account invoices enable financing opportunities on be singled out as the preferred option.
services directly linked to the merger both sides of the supply chain – the buyer In order to offer such open account
between cash and trade. and its suppliers. financing services in support of
With close to 90% of global trade A recent study initiated by the Bank of international supply chains, the buyer’s
being transacted on open account, England and published by the Association bank is dependent on industry-wide best
banks have had an increased focus on of Corporate Treasurers (ACT) concluded practices, similar to today’s UCP600, to
how to intermediate and finance those that supply chain finance, in particular work cost effectively with the suppliers’
transactions. In order to deploy such buyer-driven receivables programmes, banks and indirectly reach the suppliers.
services globally though, banks need a offers opportunities to expand lending
cost-effective network and legally binding to smaller and mid-tier companies, while Integrating innovation into today’s
collaborative model, such as those the larger companies – the ‘buyers’ – can best practices
existing for documentary trade, in order to play a significant role to the benefit of their For decades, banks have built efficient
engage with dozens, if not hundreds, of supply chains. In this case, the funding networks of partner banks to carry out
correspondent banks at acceptable cost. is based on the credit standing of the a variety of financial transactions. Even
Join the dialogue at: www.swiftcommunity.net/dialogue Dialogue Q4 2010 19
3. Opinion – André Casterman, SWIFT
global banks with a presence in dozens Re-using SWIFT to implement new
of countries around the world recognise instruments such as the BPO represents a global
the need for such partner networks. As
an example, Citibank recently referred
and cost-effective solution for trade banks.
on gtnews.com to its network of 3,000 André Casterman, SWIFT
banks covering 100 countries for trade
services. In order to leverage those The ICC Banking Commission has transactions amongst trade banks who
networks for supply chain finance, banks traditionally been the leading, global exchange close to 200,000 trade finance
now need collaborative market practices rule-making body for the banking messages on a daily basis. Re-using SWIFT
and operational rules similar to those industry, producing universally accepted to implement a new instrument such as the
developed over the recent decades to rules and guidelines for international BPO represents a global and cost-effective
conduct traditional trade business. banking practice, notably letters of credit, technical solution for trade banks. This
In the traditional world of the letter of credit demand guarantees and bank-to-bank is the intended role of the Trade Services
(L/C), an obligation is placed on the issuing reimbursement. It is widely recognised that Utility (TSU), which provides an inter-bank
bank to pay the beneficiary, subject to the ICC’s voluntary market-based approaches communications platform in support of
presentation of compliant documentation. have led to best practices in trade finance. collaborative supply chain services.
Until now, there has been no such equivalent At the ICC Banking Commission Combining the use of the SWIFT with
instrument to enable an exporter to trade meetings of November 2009 and extended ICC rules will offer banks the
on open account with the same degree of September 2010, major trade banks ideal technical, operational and legal
confidence that payment will be executed in presented their progress in deploying framework to roll out innovative services
accordance with the terms of the contract. supply chain finance services to to their corporate customers. This is now
Banks have attempted to plug the gap corporate customers in a global and seriously progressing through SWIFT’s BPO
through the issuance of conditional payment collaborative way using the BPO. The Commercialisation Group which gathers
guarantees or standby letters of credit and time has come for the ICC Banking 18 trade banks. Banks just have a few
have also developed a new instrument: the Commission to embrace the BPO rules, more steps to go in order to move from the
Bank Payment Obligation (BPO). The BPO and help the industry establish best proven concepts and available BPO rules to
is an inter-bank instrument as it places an practices in supply chain finance. A set of enabling the majority of trade banks to offer
obligation on the issuing bank to pay the ICC rules governing collaborative supply innovative financing services to the benefit
receiving bank, subject to the presentation of chain finance will be a key milestone for of their customers’ supply chains. Major
compliant data (See figure 1). the trade banks as such rules will offer a global and regional banks have anticipated
In placing reliance on this guarantee of legally binding, valid and enforceable risk the opportunity and will demonstrate
payment, banks are better able to develop mitigation instrument for financing open their new supply chain finance services in
alternative forms of supply chain financing account transactions and will remove the Amsterdam as part of the Sibos Trade and
solutions, mapped against the matching of need for individual bilateral agreements Supply Chain stream.
data which is consistent with the movement between correspondent banks.
of goods along the physical supply chain. Join the debate at Sibos!
A role for SWIFT
A role for the ICC Banking SWIFT also has a major role to play. As Practical finance in an open account
Commission part of its mandate to bring the financial world
As part of its mandate to be a leading community together to work collaboratively Tuesday 26 October – 09:00-10:00
forum for the banking industry and its to shape market practice, define standards
goal of determining the ways banking will and consider solutions to issues of mutual Optimising working capital efficiency:
be conducted in the future, the Banking interest, SWIFT is ideally placed to help The integration of cash and trade
Commission of the International Chamber banks extend services from traditional Tuesday 26 October – 16:00-17:00
of Commerce (ICC) aims to develop new trade finance to supply chain finance.
projects to account for new practices, SWIFT’s FIN messaging service today For the full details on the Trade
such as supply chain finance, e-trade and facilitates the exchange of L/Cs, demand and Supply Chain stream, go to
open account trading. guarantee and documentary collection www.sibos2010.com
20 Dialogue Q4 2010 Join the dialogue at: www.swiftcommunity.net/dialogue