By Dominic Capolongo, Chief Revenue Officer at LiquidX, based in NY
In the early 2000s, the term “digital” only ranked among the Top 5 priorities for CEOs in the 2.1% of the companies surveyed. Today, it is a top priority for one out of every five companies (Source: Gartner). It is undeniable that Trade Finance (TF), in its current state, is in need of significant disruption, and according to current statistics, 90% of companies have looked to digitization as the solution to create a seamless, effective and profitable ecosystem.
But, at its core, what is digitization? Simply put, digitization uses advanced digital technology to augment business capabilities, streamlining everything from physical assets to data, making it an incredibly powerful tool to assess daily performance and operations. Digitization adds value by reducing costs, increasing productivity and improving processing times, and as such, is a priority investment for any business looking to increase functionality and scalability.
Digitization technology maximizes business efficiency
In its most evolved state, “digitization” is so much more than just the evolution of a file. It is a system that not only automates trade finance and working capital management, but a solution that incorporates AI technology and machine learning analytics to greatly enhance transparency, reporting, and forecasting for financial professionals. In the trillion-dollar TF industry, which has traditionally relied on manual workflows, spreadsheets, and PDFs to conduct business operations, digitization technology holds the key to improving workflow effectiveness and transparency while dramatically improving a corporate and bank’s operating leverage, profitability, and risk management processes.
In an industry that is built on solutions, it is important to consider the power of true digitization and its ability to revolutionize efficiency and maximize business fortitude and resilience. It is especially important now, in the face of financial, operational, and geopolitical disruption, to identify effective solutions that are built to last – ones that are adaptable, flexible, and can improve working capital and cash flow for banks to create a foundation for business growth and expansion.
True digitization offers a holistic approach and solution
True digital transformation requires taking a holistic approach to the solution by looking at the entire ecosystem instead of its siloed pieces. Advanced digitization tools automate large portions of middle and back-office workflow. This empowers trade finance investors, banks, asset managers, and trade insurers to save significant costs while having access to better real-time information to make smarter investment, risk, and compliance decisions. With a singular solutions provider, the communication and connection between banks and suppliers becomes seamless and frictionless, while mitigating cost.
LiquidX offers one source of truth for improved risk management, visibility and efficiency
LiquidX utilizes a state-of-the-art, scalable machine learning pipeline to transform legacy assets, such as invoices and purchase orders, into digitized assets. Once digitized, the transformed asset is verified, linked to associated contracts, and dynamically connected to automated workflows. Our AI/ML technologies apply a pipeline of outlier detection, forecasting, and risk measurement models to identify and restrict unauthorized payments, predict cash flow by automating reconciliation, and provide key insights into operational effectiveness and financial exposure.
Various forms of information, whether documents or data, are ingested, consolidated and harmonized to present an overall picture of the participant’s trade business real time through a virtual dashboard. The system can also allow for actions to be taken such as risk mitigation through distribution or sourcing trade insurance. This creates one source of truth for one’s trade business allowing for improved risk management, increased visibility, and efficiencies in operations.
InBlock powers business progress
InBlock synchronizes the working capital process, adding an end-to-end layer of control that has, until now, been missing. For the first time, workflow can be streamlined and real time insights essential to AP, AR, and treasury can be achieved. Engineered using the most advanced AI and analytics technologies, InBlock connects your entire ecosystem to put actionable, accurate data at your fingertips.
Our holistic approach to digitization is driven by a singular platform, empowering clients to drive scalability, reduce fraud, strengthen operational resiliency, and most importantly – power your business’s progress.