We’re advancing the digitalisation of our trade finance with two strategic partnerships
Standard Chartered today announced strategic partnerships with TradeIX and Infor to advance the digitalisation of trade finance. The two partnerships will enable clients and their ecosystems seamless access to the Bank’s full range of trade financing solutions.
Commenting on the partnerships, Farooq Siddiqi, Global Head, Trade, Transaction Banking, Standard Chartered said: “Digitalisation of trade and trade finance is integral to our strategy and by working together with leading fintechs we can create innovative solutions to better support the financing and information needs of our clients’ and their ecosystem of buyers and sellers.”
Standard Chartered worked with TradeIX Limited, a new trade industry fintech, to roll out the first open blockchain platform for trade finance, allowing corporates a more connected and secure way to finance trade receivables and manage credit risk more efficiently. The platform leverages blockchain technology and its API-driven system to automate the process for pre-and post-shipment financing and risk mitigation for buyers and sellers, with an added option of credit insurance as a funding tool.
Having completed the first transaction earlier this month for a global logistics company, the TradeIX platform enabled the Bank’s client to help its customers increase their payment terms whilst maintaining the company’s receivables at current terms. The financing was offered by Standard Chartered with credit risk mitigation by AIG.
The second partnership will see the Bank integrating with Infor’s GT Nexus Commerce Network to provide a working capital optimisation solution by leveraging digitized supply chain information in the cloud.
The integration with the GT Nexus Commerce Network will allow its existing ecosystem, of more than 28,000 buyers and suppliers, seamless access to Standard Chartered’s trade financing solutions, covering both pre-and post-shipment financing. By leveraging the connectivity and transactional data housed within the platform, the Bank will be able to offer tailored solutions to meet the various needs of buyers and sellers with the aim of reducing the trade finance gap globally.
Michael Vrontamitis, Head, Trade, Transaction Banking, Europe & Americas added: “As a leading international trade bank, we have been exploring various technologies to find better and more efficient ways to support our clients and the digitalisation of trade. The challenge and indeed the opportunity is to connect the digital islands currently existing through third-party platforms, and increase interoperability of these systems to provide our clients end-to-end financing solutions for their supply chains.”
Already working with other fintechs including Global Trade Corporation, EssDocs, Bolero and others to digitise documentary trade, the two new partnerships in the open account space will further the Bank’s efforts in advancing the digitalisation of trade across the industry.
For further information please contact:
Hsueh-Mei Tan
Standard Chartered Bank
+65 6596 9289
tan.hsueh-mei@sc.com