Why financial institutions & their clients need trade finance workflow solutions?

Jun 20, 2023

Why financial institutions & their clients need trade finance workflow solutions?

Deep dive discussion on specialised trade finance workflows designed to ensure risk management, fraud detection, customer experience, ease of operations, resource optimization, compliance, audit and regulatory reporting.

Trade finance workflow solutions help banks and clients automate and coordinate international trade finance transactions. Many banks have paid dearly for blunders that may have been prevented with effective automated operations. 

In 2014, the Japanese Financial Services Agency (FSA) penalised a large Japanese bank 200 million yen (roughly $1.9 million) for failing to control anti-money laundering transactions with organised crime organisations. Manual errors and insufficient automation contributed.

Trade finance operational and transaction processing risks cost Citigroup $900 million in 2016. Banamex's manual processing and poor controls caused the losses. Unautomated operations and processes prevented fraud detection and risk mitigation.

It’s without a doubt that automated systems can simplify document verification, risk analysis, and payment processing in trade finance operations.

Streamlining trade finance workflows saves banks time and money. These applications eliminate manual errors and waiting time. Transaction speed and accuracy affect banks' reputation and market share.

Trade finance involves buyers, sellers, banks, and transport companies. Coordination and document flow between all these people can be complex and time-consuming. Trade finance workflow solutions improve teamwork, reduce paperwork, and reduce fraud.

Trade finance workflow systems have grown rapidly in recent years and they are only going to improve with the use of AI and blockchain which make these systems safer, more transparent & productive & reduce the overheads. As international trade grows, these technologies will speed up and secure cross-border transactions & offer digitalized and streamlined processes that customers want.

Kyzer Software’s, TradeZone, is an exclusive Trade Finance workflow which offers banks a complete Trade platform for Customer Connect, Business and Operational service transformation. It has feature like, creating multiple Product workflows, Document indexing, Digital checklists, Exception and Discrepancy Management, Client Profiling, Smart dashboards, Operational monitoring and productivity tools & real time email and alert notifications. Our systems can also integrate with different CBS’s of Banks as well as their third party systems. These capabilities help improve trade margins, accelerate business growth, improve productivity and enhance customers experience and retention.

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