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Corporate BankingFusion Trade InnovationThe industry’s leading booking engine for tradeand supply chain financeWinner of Innovator in Global Tradein the International TFG TradeAwards 2020World’s Best Trade Finance SoftwareProvider: Global Finance TradeFinance Awards 2020 and 2021Recognised as leader in the IDCMarketScape: Worldwide TradeFinance Systems 2020Trade Finance Software Aite Matrix2020 Recognised as Leader
Executive SummaryWith evolving corporate customer expectations demanding a moreseamless and engaging transactional experience, banks need toadapt with a dynamic front-to-back working capital finance bookingengine for trade and supply chain finance. More than ever, banksneed to evolve from on-premise to Cloud, to enable future-proofedintegration to an ecosystem of services that support digitalizationof the full transaction lifecycle.2 FINASTRAFusion Trade Innovation and Supply Chain FinanceSolutionFinastra’s end-to-end Working Capitalsolution offers the industry’s leadingcapabilities for frictionless trade andsupply chain finance including; buyer andseller loans, letters of credit, collections,guarantees, supply chain finance and,government support for export creditand SME loans.We provide the option of utilizing FusionCorporate Channels as an integrated frontend, or integrating directly with existingchannels or ERP systems, to deliver a singleview of data and meet customer experienceexpectations. A future-proof ecosystem,accessed through FusionFabric.cloud,allows innovation to be delivered at speedfor changing client demands.
Business goals and trendsRemain relevant in internationaltrade financeA trade services platform to evolve with compliance,client and competitive demands.80-90% of global tradeis reliant on trade and supplychain financeEquating to over an industryprocessing estimated 10tntrade financeBut with a 1.6tn trade financegap, corporate bankshave to the opportunity totransform today,to support theirclients of tomorrow.Working capital finance in the futureThe shift to digital tradeCorporate working capital finance needsare evolving. Service-based exports accountfor 20% of global trade, while supply chainfinance is growing 20% YoY for payablesfinance. This represents an opportunityfor businesses, and they require bankingsupport for new and traditional tradefinance. At the same time, banks faceincreasing costs from regulation suchas Basel III/IV.Today, corporate clients expect frictionlesstrade processing, whether for documentarytrade or for supply chain finance (SCF).Compliance and AML has becomemore stringent, with approximately 60%of transaction processing costs for banksresulting from compliance. The costsare usually passed on to corporateclients; restricting the market for SMEsto access financing, these businessesmake up a significant portion of the 1.5tn trade finance gap.Financial institutions must solve thesechallenges in a cost effective, holistic wayin order to retain their relevance to corporateclients and grow their business.3 FINASTRAFusion Trade Innovation and Supply Chain FinanceBusinessRemaingoalsrelevantand trendsGrow yourtrade businessThe growth in digital tradehas opened new ways to enhancethe corporate user experience.For the banks that can take advantage,end-to-end trade digitization meansmore relevant financing and advice;faster turnarounds; fewer discrepancies,and greater visibility for corporates andbanks alike. Fusion Trade Innovation andSupply Chain Finance provide the coresolutions for trade digitization for over 200global trade banks.Total trade and working capital financeDisparate legacy applications and a lackof agility have amplified the struggle to reactto new standards, product demandsand disintermediation.SolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platformWith data islands and manual processing,comes less visibility and a reduction in clientsatisfaction and cross-sell potential.With Finastra, banks move to a singlesolution covering the broadest and deepestsuite of trade and working capital financesolutions on the market.Digital processing for growing areas likeguarantees helps Finastra clients capturegrowth from profitable service‑basedexports, while flexible and STP‑driven supplychain finance helps to capture the SMEand open account revenue opportunity.
Smarter compliance and risk distributionCIB Egypt brings next-generationdigital services to corporate clientsKYC compliance, new messaging standards and theinability to quickly recycle capital has increased thecost of doing business and the shift to open account.Fusion Trade Innovation improves STP on sanctionsand compliance screening, harnessing the latestadvances in machine learning and optical characterrecognition. Assets can be moved off-balance sheetmore efficiently through controlled and transparentasset distributionto recycle capital quickly andreduce financing costs. Finastra solutions complywith latest SWIFT Message Types and formats,ensuring business as usual and paving the wayfor the digital standards of tomorrow.Key statistics40%Faster innovationFinastra’s solution for intelligent trade services enablesfast time-to-market for more tailored trade and workingcapital finance services. Finastra’s best-of-breed coreapplications for trade and supply chain finance workin unison with leading solutions from the ecosystemso you can move faster, at lower cost and risk.By connecting the services and data that corporateclients need with a solution that aligns the physical andfinancial supply chain, banks deliver value-added tradeservices, drive process automation, and can explorenew collaborative business propositions.4 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade business20%Increase in automation of trade transactions50%Of all corporate banking transactions are nowperformed online40%Lower costs than performing transactionsmanually in branchAccess the full case studySolutionEnd-to-end workingcapital financeIncrease in automation of cash transactionsThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platform“We are the first bankin Egypt to bring this kindof supply chain financeoffering to market,which acts as a significantdifferentiator for CIB Egyptand evidence of our positionas a leading innovator.”Mahmoud FawzyCorporate Digital ChannelsManagement Head, CIB Egypt
End-to-end working capital financeA market-leading trade solution, delivered across the right channels,connected to a powerful and future-proof ecosystem.Fusion Corporate ChannelsTraditional TradeFinanceBrowserValue addedservicesCross sFusion Trade InnovationLetter of CreditGuaranteesMobileCollectionsOpen DigitalChannelsFile servicesTotal workingcapital financeIndustry leadingbooking s SecurityParticipationsOpen AccountFinanceAPIsCollaborationIntegrationSupply chainfinanceChatbot5 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessExport creditAgencySolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platformFusion Trade Innovation and Fusion CorporateChannels offers banks the best-in-class,end‑to‑end capability for working capital finance,including buyer and seller loans, letters of credit,collections, guarantees, supply chain financeand, government support for export creditand SME loans.Fusion Corporate Channels offers an integratedfront-end, enabling integration directlywith existing channels and ERP systems,providing a single view of data to meetcustomer experience expectations. Our open,API‑enabled solution enables flexible integrationwith ecosystem partners, which we willcontinue to expand as part of our IntelligentTrade Ecosystem strategy.Customization of screens, to data visualisation,through to workflow customisation through SDKand global processing capabilities, means globaland regional banks can deliver a single operatingmodel across all geographies. Future‑proofedecosystem access through FusionFabric.cloudallows innovation to be delivered at speed,for dynamically-evolving client demands.
The future of trade and supply chain finance is openIncrease relevance and automate compliance with a future-proofservices platform.Connect trade and transaction servicesMT798 PlatformOpen Account PlatformsEnterprise Resource PlanningDoc. Trade PlatformsOpen DigitalChannelsOn-boarding and MobileAsset Distribution PlatformsDistribution andinitiationFusion TradeInnovation000000Industry leading bookingengineDigital Original DocumentsDigital atsourceAI andAutomationOptical Character RecognitionDistributed Ledger TechnologyNatural Language ProcessingProgressive Machine LearningDigital Transferability of OwnershipHover over diagram to enlargeFor leading corporate banks, trade financeprovides the business case for widerdigital transformation. It has the potentialto drive new fee-based revenue, deepencorporate connectivity and capture growthin line with the changing financial needsof international commerce.6 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessFinastra’s modular and connected corporatebanking suite combines trade and supplychain finance applications with commerciallending, cash management and treasuryservices, on a single, interoperableplatform. With a unified digital experienceand integrated operations banks andcorporates benefit from a consolidatedview of business. Open connectivityto ERP and treasury technology enablesSTP and real‑time visibility of informationabout purchase orders, invoices andLCs, and the ability to efficiently delivera comprehesive suite of financing,risk and transaction services.watchlist checking is delivered by FircosoftAccuity, and AI‑based document generation,screening and digitization is deliveredthrough partners like Conpend and Enigio.Extensible platform to automate andcompete paperless tradeOpen banking and the availabilityof non‑bank services are driving newbusiness models. With Finastra’s core tradesolution and open platform, banks canleverage open APIs to embrace new datasources for analytics and more roboticprocessing throughout the customerjourney to enhance service.AML and sanctions compliance accountsfor 60% of trade finance costs (“SecuringGlobal Growth”, ICC, 2018). With FusionTrade Innovation and our partnerecosystem, compliance can be automatedto reduce risk and costs. IntegratedSolutionThe future is openIntelligent tradefor smarter growthFuture proofyour businessThe solution is cloud-ready witha browser‑based UI. With a microservicesstrategy and shift to REST APIs,banks can flex their solution asneeded. A comprehensive SoftwareDevelopment Kit (SDK) also meanstransformation is deliveredon an evergreen core architecture.“Trade finance provides thebusiness case for widerdigital transformation.”Achieve greater compliance automationEnd-to-end workingcapital financeThe future is now: Cloud-ready, flexibletechnologyA proven platform
Intelligent trade for smarter growth“Through Fusion TradeAdvanced straight-through processing, digitization and data analytics toseize growth in guarantees and open account business.Innovation, we successfullyscaled up to supporta three‑fold growth in ourletters of credit businessin late 2018.”Seizing growth in documentary tradeWith guarantees and standby lettersof credit (SBLC) business growing,and open account on the rise,banks are under pressure to offer newworking capital services. Often theseare only viable if digitally delivered andwith high STP. Fusion Trade Innovationensures front‑to‑back digitizationof the documentation and processesaround complex guarantees wordingsand workflows, reducing frictionin processing and improving turnaroundtimes -- as well as fully supporting lesscomplex but equally document-driventraditional trade instruments.Paul BakerDeputy Group Head of Operations,Bank ABCAccess the full case studyCapturing the open account opportunityThe Fusion Supply Chain Financeapplication is a scalable, STP solutionfor every SCF business line. It coversstandard modules for approved payablesand receivables financing, as wellas factoring, forfaiting, asset-based lendingand much more.7 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessFrom the digital front-end to operations,the solution enables automated applicationof business criteria for individual SCFprograms, automatic payments andreconciliation, ERP connectivity andintegrated risk and asset distribution.The global operations dashboard withinFusion Trade Innovation provides oneview of work across bank entitiesand clients to prioritize workflow andmanage bottlenecks across trade andworking capital business.Banks can manage SCF transactions‘by exception’ to scale up and capture thegrowth opportunity, while buyers and sellerscan access cost-effective, timely workingcapital finance.“Global data analytics for smarterrelationship managers and operationsThe Fusion Insights application enablesrelationship managers to deliver moretimely advice with real-time viewsof client business. It draws on data fromFinastra’s trade finance applicationsand other systems to provide dailysupport and strategic advice to clientson transactions as well as future trendsin global and local trade.SolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platformFusion Trade Innovation ensuresfront‑to‑back digitization of thedocumentation and processesaround complex guaranteeswordings and workflows.”
Future proof your international trade businessOne platform to support everything from blockchain to big data; cloudto open APIs and to embrace emerging standards for digital trade.Harnessing the fintech ecosystem withan open platform for trade innovationWith connectivity to the FusionFabric.cloud platform, Fusion Trade Innovation’score and digital channels APIs are exposedto the developer ecosystem. This hasresulted in a range of value-addedapplications, for example AI toolsto improve KYC processes and documentchecking, and integrations with emergingdistributed ledger networks. Finastrapartners with leading consortia for digitaltrade finance to ensure connectivity andactive involvement in the trade financenetworks of the future.8 FINASTRA200 financial institutions processing 10% of Daily Trade Finance with Finastrais uniquely positioned to provide unifiedtrade and supply chain services from asingle working capital finance platform.The solution provides fully connectedyet discrete components to allow banksto evolve in manageable steps.Continuous delivery to evolve with thefuture trade ecosystemBy driving change in the trade financeindustry with our advocacy workaround digitalization and advancingthe use of emerging technologiesthrough FusionFabric.cloud, APIs andthe shift to microservices, our clientsbenefit from continuous delivery andthe expansion of services throughcollaboration with partners.Fusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessAward winning implementations throughfusion blueprintsWith Fusion Blueprints, Finastra’s provenservice delivery model, modificationsare only made for business, regulatoryor external system requirements.And because the SDK and API frameworkallow you to extend system capabilitieswithout changing core code, your intellectualproperty, data and interfaces are secureas new releases are delivered.“Finastra partners with leadingconsortia for digital trade financeto ensure connectivity and activeinvolvement in the trade financenetworks of the future.”SolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platform90%Compliance coveragewith Finastra’s intelligenttrade services platformand AI-driven screening,reducing document checksfrom two days to ten minutes.Source: Finastra and client PoC with FusionTrade Innovation and Conpend, 2021
A proven platform for global tradeConnected solutions for corporate clients.A global and connected solutionWhether to support complexities of largecorporates, or the simplicity demandedby SMEs, Fusion Trade Innovationand Supply Chain Finance supportthe connected, round-the-clock needsof your customers. Our trade financesolutions are pre‑integrated with ourconnected corporate banking suite,enabling institutions to redesign theiroperating model across of the corporateor commercial bank.FusionFabric.CloudFinastra’s platform for collaboration andco-creation. Increase the speed of changeby delivering innovations and new servicesto your corporate clients through anopen platform. By leveraging FTI bankscan benefit from access to a growingecosystem of services, including digitizationand data analytics.Juan Jiménez Zaballos, Global Head of Corporate Banking Innovation atSantander Group share his views on new technologies, including the biggestfactors impacting the ultimate success of open APIs within the trade ecosystem.9 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessSolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platform
State Bank of India reinvents its trade financebusiness for the digital ageKey statistics80%“We are on target to reduce globallabor costs for trade finance by 75%in the short term, and potentially by80% in the medium term as we makefurther optimizations.Reduction in global labour costs for trade financein the long-term95%Reduction in average processing time”3%Uplift in overall trade finance business300%Increase in trade finance transactionsShiv Kumar BhasinChief Technology Officer, State Bank of IndiaAccess the full case study10 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessSolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA provenproven platformplatform
Why Finastra?Solution roadmapFusionFabric.cloudFinastra is committed to the trade and supply chain finance industry and its future by investingheavily in R&D. We are open and continuously looking for new collaboration opportunities with ourclients and other fintechs. We strive to bring the latest techniques, services and technology to ourcustomer base allowing them to generate new business more effectively.Finastra’s platform for collaboration and co-creation. Increase the speed of change by deliveringinnovations and new services to your corporate clients through an open platform.By leveraging FTI banks can benefit from access to a growing ecosystem of services, includingdigitization and data analytics.Corporate Connected BankingNetwork of expertiseFinastra’s connected corporate banking platform provides the most complete, connected andopen suite of applications for transaction banking and corporate lending. Built on a commontechnology stack with standardized interfaces and APIs the platform provides proven omnichanneldigital banking and back office applications for Trade, Supply Chain Finance, Cash Management,Payments and Lending.Finastra is at the forefront of defining the future of trade through collaborations with next generationnetworks and our work with industry bodies such as the International Chamber of Commerce(ICC), the Bankers Association for Finance and Trade (BAFT), the International Trade and ForfaitingAssociation (ITFA), World Economic Forum and many more.ExperienceIntelligent trade ecosystemFinastra supports a community of over 200 trade and supply chain finance banks worldwide for25 years. Our proven and time-tested platform for global trade enables financial institutions todesign their operating model across the corporate or commercial bank, front-to-back. We have anextensive global, as well as regional understanding of the local markets that underpins our solutionand drives our roadmap.With FTI, banks can address the dynamics of the drive to paperless trade, greater automation andopen account with unique technology partnerships.The availability of open APIs makes adding new products and services into the overall customeroffering much faster, and facilitates STP through cross-product workflows within a bank’s widerapplication architecture.11 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessSolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platform
Why Finastra for intelligent trade services?As founders of The World Trade Board, and members of the WorldEconomic Forum, Finastra is committed to the future of trade financewith the mission of improving people’s lives by connecting finance,technology, and regulation.Our community of over 200 banks process more than 6% of dailytrade finance and drive the market agenda and emerging collaborativenetworks of global trade finance.Finastra offers a best-in-class and unique single front-to-back tradeand supply chain finance solution. This is complemented by an openplatform for innovation and extensive Software Development Kitto future-proof your working capital business and technologies,deployed either on-premise or the Cloud.Experience and reputation with global clients such as ING andFirst Abu Dhabi Bank12 FINASTRAFusion Trade Innovation and Supply Chain FinanceRemain relevantGrow yourtrade businessSolutionEnd-to-end workingcapital financeThe future is openIntelligent tradefor smarter growthFuture proofyour businessA proven platform
Finastra is unlocking the power of finance for everyoneby creating a platform for open innovation in the worldof financial services.
Contact usAbout FinastraFinastra is building an open platform that accelerates collaboration and innovation in financial services, creating betterexperiences for people, businesses and communities. Supported by the broadest and deepest portfolio of financial servicessoftware, Finastra delivers this vitally important technology to financial institutions of all sizes across the globe, including90 of the world’s top 100 banks. Our open architecture approach brings together a number of partners and innovators.Together we are leading the way in which applications are written, deployed and consumed in financial services to evolvewith the changing needs of customers. Learn more at finastra.comFinastra and the Finastra ‘ribbon’ mark are trademarks of the Finastra group companies. 2021 Finastra. All rights reserved.GL 3666 / 0721Corporate Headquarters4 Kingdom StreetPaddingtonLondon W2 6BDUnited KingdomT: 44 20 3320 5000
exports, while flexible and STP-driven supply chain finance helps to capture the SME and open account revenue opportunity. A trade services platform to evolve with compliance, 80-90% of global trade client and competitive demands. is reliant on trade and supply chain finance Equating to over an industry processing estimated 10tn trade finance
