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Trade Finance Rebooted

Jenny AlexandrouSession and date

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1. The growth of Trade

2. Temenos response

3. 2015 developments and 2016 roadmap

4. Demo of Channels Corporate view

5. Introduction to Blockchain and Trade and open forum

Agenda

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The growth of Trade –how this is being handled in the Temenos Core Banking system

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Cross-border trade has more than tripled since the 1980’s

Trade is expected to grow by on average 7% a year until 2020

+80% trade are on Open Account transactions

The fastest growing Trade Finance Product is Supply Chain Finance

Trade business evolution- ICC 4

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Industry forecasts indicate that world trade will grow by 73% in the next 15 years, with merchandise trade volumes in 2025 hitting $48.5trillion, compared to today’s $27.2trillion. ICC and SWIFT are best positioned to help the banking industry facilitate further growth of trade using innovative solutions. SWIFT is committed to helping its member banks deliver innovation in trade finance to the corporate world

Trade Growth - Gottfried Leibbrandt, Head of Marketing, SWIFT

Gottfried Leibbrandt – Head of Marketing – SWIFT.

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2015 deliveries and 2016 roadmap

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At the time of writing this roadmap is accurate and is regularly updated, however, for various reasons it may be subject to change

Corporate Suite Deliveries 2015

Q1 Q2 Q3 Q4

Trade - ChannelsCorporateDashboard POC

Trade - Channels• Import LC’s – amendments, drawings

and discrepancies• Export LC’s – advising, amendments,

drawings and discrepancies • Advised guarantees, amendments

and invocations• Issued guarantees , amendments and

invocations• Clerk – dashboard• Manager - dashboard

Trade Finance• inward MT422, 430, 420 • inward MT416 and MT999

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At the time of writing this roadmap is accurate and is regularly updated, however, for various reasons it may be subject to change

Corporate Suite Planned Roadmap 2016

Q1 Q2 Q3 Q4

Trade – Channels• Inward collections – notification of

collection with scanned documents, payments, acceptances, finance

• Export collections – visibility of collection, payments, acceptance and finance

Trade Finance enhancements• Amendment commission/acceptance commission/discount commission of Import LC• Currency to default from LC to drawing• Collection avalisation• Shipping guarantee commission• Claim under Letter of Guarantee• Default of assignment of proceeds into drawings

Swift changes for 2016

Bank Payment Obligation and Supply Chain

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Comparing the different types of Trade products 9

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Demo of Temenos Connect from Corporate view

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Demo of Temenos Connect from Corporate view 11

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Introduction to Block chain and Trade and open forum

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The 5 Unique Characteristics of distributed , decentralized ledger

Consensus

Validity

Uniqueness

Immutability

Authentication

Blockchain – The turning point for innovation in financial industry 13

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Cost-Cutting is the Big Hope

POC: Trade Finance Standard Chartered Bank, DBS Bank and

Infocomm Development Authority of Singapore (IDA) have developed proof of concept (PoC) for a blockchain-based invoice trading platform.

Temenos View We will seek out opportunities to understand

this technology better and may pursue some ideas how to associate ourselves with it

“Blockchain could create tamper-proof supply chain management” Simon Taylor – Blockchain and Distributed Ledger Subject Matter Expert – Barclays

$54bnannual clearing &settlement costs globally

30%of these costs could be reduced by blockchain by 2021

$16bnof savings for the industry

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Don’t forget!

Join the conversation – Tweet or Facebook post the #tcf2016

Download this presentation now – you can download this presentation and other TCF materials from the TCF2016 app

Have your say – take part in the 9th annual TCF survey, also available on the TCF2016 app

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Thank you