INDUSTRY
Banking
Banking Services Transformation: Unlocking Exponential Value
Solution
Highlights
- The trade finance industry is a paper-intensive business. High operations cost, dependency on manual processes including compliance, and subjective decision-making are some challenges the industry faces.
- Banks offering trade finance services are rapidly embracing digital technologies to automate processes for better turnaround and superior end customer experience.
- TCS Trade Finance Digitization, Automation, and Analytics uses cognitive technologies such as artificial intelligence (AI) and machine learning (ML) to transform a bank’s trade finance operations and outcomes.
in this article
Overview
Trade finance has been a paper-heavy business, but its future lies in digitalization.
As increased competition and new trade agreements continue to drive the trade finance market, digital technologies can provide banks with an integrated view of the trade finance process, removing any delays or possibilities of trade failure. An improvement of connected online processes also facilitates the stickiness of the platform for small and medium enterprises (SMEs) and large firms.
TCS Trade Finance Digitization, Automation, and Analytics leverages artificial intelligence (AI) and decision science to automate business decisions. The end goal is to reduce the turnaround time and cost of decision making. In addition, the solution comprises a suite of modular solutions such as cognitive automation and a command center to reimagine a bank's trade finance transformation experience and outcomes.
Business context
Trade finance is a critical aspect of the global economy.
Since it is a paper-intensive business, banks face tremendous pressure to reduce their cost of operations. However, a high dependency on manual intervention for data entry and scrutiny of documents leads to considerable delays, especially in financing, which impacts accuracy and scalability. Further, manual compliance screening, combined with biases in human decision-making, lead to inconsistencies and higher risks. Additionally, descriptive analytics are limited to business objects (BO) reports, structured query language (SQL) reports, and more, from multiple systems with limited visual dashboards, preventing banks from gaining complete insight into the trade finance business.
The solution suite transforms the entire trade finance business through digitalization and automation. The solution is equipped with a trade insights generator and leverages next-gen analytics through the command center model to provide actionable insights. As a result, the solution drives large-scale transformation without any major changes to the existing IT infrastructure. In addition, it complements banks' existing systems, increasing the speed to market and enhancing user experience.
Our solution
TCS offers a feature-rich solution to streamline the end-to-end trade finance value chain.
TCS Trade Finance Digitization, Automation, and Analytics offers the following capabilities:
- Business transformation: It provides solutions for digitalization, automation, client servicing, and analytics. These capabilities drive a holistic rebuilding of trade finance processes with a reference business architecture.
- Digitization: Paper-based, unstructured input from customers and third parties are digitized using cognitive technologies like machine learning, natural language processing, and rule engine.
- Document automation: The document scrutiny process and compliance checks of a bank are automated.
- Customer self-service: Self-service channels such as chatbots and automated email allow for frictionless customer service experience.
- Next-gen analytics: A command center equipped with analytics provides insights into the trade finance business.
Benefits
TCS’ solution removes manual touchpoints and helps build a customer-centric ecosystem
TCS Trade Finance Digitization, Automation, and Analytics provides the following benefits:
- Process transformation: Digitalization, straight through processing, combined with self-service capabilities and insights into customers streamline the trade finance process, ensuring transparency.
- Operational resilience: Automation ensures business efficiency, improved accuracy, and greater scalability in the trade finance process.
- Increased revenue: The solution helps banks achieve over 20% increase in revenue and portfolio expansion.
- Reduced turnaround time: Technologies such as blockchain or distributed ledger and ML decrease the turnaround time (TAT) for banks in delivering products and services to their customers.
- Compliance management: The solution automates all facets of compliance screening. It creates audit trails, improves accuracy, and de-risks the business.
Why TCS
TCS brings a wealth of expertise and experience to an engagement.
By partnering with TCS, banks can take advantage of the following differentiators:
- Domain and technology expertise: TCS has a strong network of more than 1,500 subject matter experts, with over 20 years of experience in trade finance coupled with technical prowess.
- Proven expertise: TCS services some of the top-tier trade finance banks and leverages that knowledge to build new solutions and accelerators. This allows TCS to identify the right transformational opportunity and digital roadmap for its customers.
- Leader in cutting-edge tech: TCS leverages the latest technologies for its transformation initiatives, from blockchain or distributed ledger to cognitive technologies such as machine learning, all to drive innovation, ensure speed to market, enhance user experience, and improve business performance.