Trade is a sign of a booming economy. It is executed between different geographies and time zones. Trade facilitates value chains at different levels. It involves multiple parties, including banks, along with a lot of paperwork. The entire process involves high risk as the buyer and seller are in different geographies with a chance to get duped in spite of parting with the money and goods/supplies. Hence banks get involved from either side to hedge off risk and take care of the financial transaction and goods exchange giving rise to a new branch in banking “ Trade Finance. As the whole process involves high stakes and paper-based processes, the processing, maker-checker process, scrutiny, etc., takes a long time. Intelligent Automation enables the transacting parties to expedite the entire Trade Finance process to the nth level.
How does Intelligent Automation expedite Trade Finance?
Intelligent Automation integrates Intelligent Data Capture or Intelligent Document Processing, Document Management, Rules, Artificial Intelligence / Machine Learning algorithms, Workflows, etc. The entire mashup expedites the paper-based process beyond imagination. In the context of the Trade Finance scenario, it also integrates various auto-checks for global Anti Money Laundering compliance measures, the fulfillment of statutory regulations, and document consistency.
Intelligent Automation expedites data extraction from the digitized paper assets. It also classifies the digitized assets into different categories of documents for each Trade Finance case. In case of any missing document, it initiates auto-triggers to the concerned party and stakeholders for immediate fulfillment.
Intelligent Automation enables massive collaboration between multiple parties, including bank relationship managers, front and back offices of banks, the buyer and seller parties, logistics, etc. It powers a Smart Inbox whereby it facilitates analysis of all incoming cases and assigns it to an available operator thus seamlessly managing load balancing.
Intelligent Automation allows two-way integration among the systems of the banking parties involved and SWIFT payment gateways. After the entire documentation process is completed and verified, the information is integrated into the core banking system to release the final payment to the seller’s bank and complete the Trade Finance transaction.
The business impact of Intelligent Automation on Trade Finance processes
Intelligent Automation facilitates a high-speed and accurate paperless transaction and improves the turnaround time of the process that usually concludes in weeks into a few days. The solution is scalable and can be hosted on the cloud as well as on-premise. Intelligent Automation introduces end-to-end automation of lengthy and winding tasks including document receiving, digitization, verification & validation, compliance, and finally integration with core trade finance and banking systems.
Intelligent Automation improves process efficiency by almost 70% as well as reduces error and back and forth by 50%. It reduces operational expenditure and introduces high agility in the process. It ensures 360-degree monitoring of the entire transaction and ensures optimal use of resources.
Conclusion
Intelligent Automation automates the end-to-end Trade Finances process and improves compliance with international trading rules. It eliminates instances of money laundering and fraud at each and every stage of the process. It synchronizes the operation with global trade monitoring. It streamlines the entire Trade Finance process and accelerates transformation.
