23 Oct 2018
Seven leading banks have launched a digital platform that they say will be the first global multi-bank, multi-corporate network in trade finance.
The ‘Trade Information Network’ is designed to enable firms to ‘easily and securely’ communicate trade information with banks, and address the need for financing earlier in the supply chain.
The network has open architecture and standardised connectivity based on a governance model similar to SWIFT ‘to achieve maximum adoption across the supply chain ecosystem.’
Companies will be able to submit and verify purchase orders and invoices to request trade financing from the banks of their choice, Standard Chartered explained.
“By providing those banks with access to trusted trade information, the Network will help to mitigate the risk of double financing and fraudulent trade information across the industry.
“This enables the relevant banks to better assess risks and provide trade financing earlier in the supply chain, including for small and medium-sized enterprises who have traditionally experienced difficulty in accessing trade finance.”
Banks will provide financing outside of the Network using their existing systems.
financing earlier in the supply chain, StanChart added.
You can claim CPD minutes for reading this article, by signing up to our CPD WalletFREE CPD Wallet