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.
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.