TradeWiz has designed a core platform to process Trade Finance Transactions (called Tr8Star) at a Bank and Corporate side. In line with the current shift towards digitisation in Trade Finance, TradeWiz has prioritised the Bank Payment Obligation Module, which is a Smart Contract to be triggered with transactional data instead of traditional (paper) documents. These transactions are governed by ICC (International Chamber of Commerce) Rules and the structured (ISO20022) messages are being securely distributed over the SWIFT network. The matching of transactional data again the Bank Payment Obligation is also done fully automatically by a SWIFT controlled engine called the TMA (Trade Matching Application), thus ruling out the room for personal interpretation as well as realising huge processing time savings. The TradeWiz platform will be hosted and offered by the Banks, who can extend the corporate portal (functionalities) to their clients. Both the Bank and Corporate portal will be enriched with more products (e.g. Bank Guarantees and Letters of Credit) and functionalities over time
The corporate application can be branded in the bank’s look and feel and integrated into your Corporate Portal or act as a stand alone portal if needed.
With the bank application transactions initiated by your corporate, or received from your correspondent bank can be further processed.
Depending on the level of integration, transactions can be straight through processed.
Bank Payment Obligation
The Bank Payment Obligation (BPO) is a welcome additional Trade Finance instrument offered by Banks to Corporates next to the existing Letter of Credit, Guarantee and Documentary Collection products. Compared to the open account Trade in particular (even when covered by Credit Insurance), BPOs offer an optimal tool for the assurance of payment obligations, which may be financed if the supplier so wishes.
Since the launch in 2014, the BPO has taken some time to gain traction whereby initial use was mainly seen in Asia, the Middle East and some parts of Europe. However the recent focus on the need for digitisation in Trade has had a very positive effect on the Bank Payment Obligation because after all, it is the only fully operational Smart Contract out there, covered by international ICC rules (URBPO) with a global standard messaging infrastructure (ISO 20022) and the POC phase has been completed years ago.
Hence we at TradeWiz have noticed a need for those banks who are active (or considering to become active) in the BPO playing field to have some tools to handle these transactions internally as well as being able to offer their clients to experience the full digital BPO client experience. TradeWiz has developed and implemented a trade finance transaction processing framework called Tr8Star (pronounce TradeStar) that, amongst others, enables BPO processing at the Bank side (STP if desired) as well as allowing the bank to communicate with their clients using a stand alone or fully integrated corporate (Bank Branded) web portal.
Its design is so flexible that it can either be hosted in the cloud or run on premise at the Bank. Our experience with implementing Tr8Star at a major European Trade Finance Bank has shown that the actual effort for the bank was minimal (scenario: on premise installation) and TradeWiz staff could support the bank almost entirely remotely throughout the process.
Please contact us to find out more.