Case Study
With the help of trade finance automation, A LEADING BANK REDUCES PROCESSING TIME BY 33%.
Services
To automate the entire Trade Finance process which was manually carried out by the bank for reducing the processing time and increasing efficiency.
Industry
Banking & Financial Services
The Challenge
One of the biggest international banks in the world, the bank offers a wide range of services to meet customers’ demands for international trade finance, including financing based on Letters of Credit, open account financing, and supply chain financing.
The bank’s trade financing operations involved a huge volume of work, the majority of which was done by hand. Depending on the situation, there were various checklists and a separate set of regulations for each applicable transaction.
A system that does not support optical character recognition (OCR) was already in use by the bank. The trade financing transactions were manually processed, which led to numerous errors at all levels, considerable time delays, and increased costs. The bank had to personally check each transaction, which extended turnaround time by 2 to 3 hours.
To eliminate manual labour and lower the risk of error, the client sought to automate the entire trade finance cycle. A web-based solution that could be connected with the bank’s current system was what the bank was looking for.
THE SOLUTION
In order to fully automate the bank’s whole Trade Finance lifecycle, Innovya to build a cloud-based solution.
The solution’s integration with the bank’s primary banking apps was easy. All of the banks’ trade finance transactions, including letters of credit, guarantees, loans, collections (import & export), shipping guarantees, and reimbursement, were catered to by the solution.
The solution gave the historical application workflow functionality and also gave interfaces to channels like FAX, Email, Swift, ARC, etc.
Using a new web-based solution with workflow-enabled approvals encompassing Front Office, Middle Office, Back Office, and other dependent teams, Innovya Trade Finance solution replaced the preexisting solution.
The trade finance solution’s OCR capability allowed the bank to automatically classify the documents based on several criteria and automate the data collecting procedure from the papers themselves.
The bank received assistance from IBM FileNet with data storage, data management, and data migration.
Conclusion
- Turnaround time was 60% faster
- Rejection rate dropped to 10% from 40%.
- 80% less manual labour is required
- absolute adherence to regularity criteria
- Auto-scrutinization of 80% of papers
