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What’s Next is Now: The Future of Trade Finance is Here

The Future of Trade Finance

By Jim Toffey, CEO at LiquidX, based in NY

Are you a trade finance bank leveraging multiple origination platforms and channels? Stuck with inefficient back-office work, different standards and formats of reporting and no easy way to scale? Our customers have come to us frustrated about how complicated and disorganized internal booking of transactions, tracking, and reporting can be.

LiquidX is bringing the future of working capital, portfolio management, and digitization to the trade finance industry, today. We recognized that simplifying the way businesses approach scaling, mitigating risk and transparency will make a world of difference in growth capabilities. Since our inception, LiquidX has evolved into the market’s only single-source solution for empowering your entire, holistic trade finance business.

The LiquidX platform bundles the entire ecosystem into a singular platform, employing cutting-edge technology to optimize middle and back-office functionality, alleviating the efficiency pain points created by cumbersome, paper-heavy workflows. In automating manual processes and eliminating operational challenges, the LiquidX platform provides banks and asset managers up to 50 percent savings while merging every end point, from origin to distribution in one place, regardless of which platforms you’re using. As a result, higher operating margins in this class can be achieved – seamlessly.

We have focused the priorities of our world-class solutions to provide a streamlined approach towards digitization, visibility, monetization, management, monitoring, and scalability. Our comprehensive, agnostic platform is built for you to do better business with all of your partners, banks, and asset managers across technologies.

As an industry innovator and leader, LiquidX’s priority is to create efficiencies with our partners over the long term rather than a more transactional relationship. LiquidX’s core focus is to be the primary SaaS solution to enable each of our partners to meet peak performance, free of historical roadblocks.

LiquidX now features three core products to maximize efficiency, liquidity, and scalability. Introducing:

  • TradeHub
  • Trade
  • TradeOps

The Most Flexible & Efficient Platform

The new InBlock products will enable corporates, financial institutions, and insurance providers to drive better business through digitization tech that fuels efficiency. With each product dedicated to streamlining middle- and back-office operations, users can trust that their business will be capable of scaling with ease.

TradeHub is the market’s first ever real-time, comprehensive middle-office digital solution for all your positions and transactions. TradeHub enables users to aggregate their data across various investment programs and platforms, regardless of the origination source, into a live dashboard. Here, users can easily assess their positions and risks to see the full picture of where they are before transacting. This data-rich access to positioning and risk inform a thoughtful approach to client management and transactions.

Our InBlock digitization tools ingest and normalize your data, from any source. The automation of reconciliation processes allows our engine to digitally match invoices, remittance advice, and payments. Thisproduct is fully configurable to user requirements, with bespoke cross sections for the user’s business. Data is accessible to stakeholders across the organization, enabling real-time, data driven decisions.

TradeHub users will also gain access to middle office automations, comprehensive risk, compliance and global exposure reporting, and real time position management and reporting.

With TradeHub, you will:

  • Understand all aspects of your portfolio to aid with risk management and assist in compliance analysis and review so that you can make smarter investment decisions.  
  • Understand your Comprehensive Risk, Compliance, and Exposure to any bank, corporate credit, and insurance company.
  • Achieve real-time compliance verification, KYC, and ESG checks. 
  • Track all distribution activities and insurance coverage with additional plug-in technologies for a comprehensive view of your net exposure to clients and overall exposure to other financial institutions and insurance companies.
  • Know that your positions will be covered by your insurance.
  • See every invoice, credit, position the way you want it with the ability to parse your portfolio by such things as geography, client name, industry and currency.
  • Understand your outstanding exposure and project future exposure based on trading patterns, including expected money flows and positions today, and any day in the future.

Trade is a comprehensive software platform solution built to originate and distribute transactions. This linear ecosystem enables banks and financial institutions to sell an AR/AP platform to their corporate customers to either build their own system, white label, or co-sell with another platform. Here, inventory is structured as true sales or a financing of specified obligors or portfolios through a single bilateral transaction or a complete and complex multi funder/syndicated program. Corporates leverage InBlock trade to manage cash flow and liquidity across working capital solutions, simultaneously allowing for adjustments during the trade process. The platform includes tools to onboard counterparties and gather and track all documentation, including KYC and legal agreements, giving corporates and financial institutions scalable, global technology and legal infrastructure to service all their working capital and trade finance needs.

Corporates improve working capital through:

  • Accounts Receivables
  • Supply Chain Financing
  • Asset Backed Lending (Securitization)
  • Trade Credit Insurance
  • Dynamic Discounting

TradeOps is the first and only complete solution to outsource your middle- and back-office trade finance functions. TradeOps combines the most advanced technology of LiquidX and the world class outsourcing capabilities of Broadridge to deliver a turnkey solution that connects your entire ecosystem to put actionable, accurate data at your fingertips. As the first complete solution to focus on eliminating all the operational challenges that typically plague the industry, TradeOps is the only true end-to-end BPO solution for trade finance.

With flexible pricing and a servicing model that scales with investments, users leverage smarter and faster operations with better returns. Processing trade transactions on our platform has been made more streamlined and cost effective. TradeOps empowers trade finance investors, banks, and corporates to improve efficiency, save significant costs, and scale by 30-50%.

TradeOps is the most advanced reconciliation engine paired with AI tools for automation, taking the accuracy of reconciliation to the highest level achievable. Through TradeOps, access to our InMatch application is accessible, and it is available as either part of the TradeOps platform or can be employed on its own.

InMatch solves payment reconciliation issues faced by treasury and accounts receivable departments by auto-reconciling invoices in seconds. Here, remittance information across multiple data sources is digitally ingested and transformed and then matched with invoice and payment details. InMatch further optimizes the process of reconciling cash flows through use of machine learning to continuously enhance the matching logic in the system. Using sophisticated analytics, predictive models are developed for determining the behavior of a given counterparty.

As a result, InMatch can predict timing of cash flows, detect and automate customer behaviors, and identify potential errors, increasing the auto-match rate up to +95%. The rich asset history stemming from the digital cash flows vastly improves the certainty of payment, benefiting metrics such as Days Sales Outstanding and Average Days Delinquent, as well as the accuracy of the cash forecast.

With TradeOps, you will have:

  • A comprehensive real-time dashboard and reporting platform to monitor your operations end-to-end.
  • Access to our AI and machine learning to automate all manual work functions.
  • Access to a modular solution, providing you with what you need to optimize your operations. This includes the ability to add TradeHub capabilities in order to outsource both your middle- and back-office.
  • Management of your payment process, presenting payment instructions that can be immediately actioned by you.
  • Insight into money flow changes in real-time, as underlying invoice terms change.

These three InBlock products all function to increase efficiency, liquidity, and forecasting, all while providing access to better real-time information to make smarter investment, risk and compliance decisions.

Experience the Turnkey Front-to-Back Platform

LiquidX’s InBlock products create true digitization to eliminate painful workflows and costly processes, streamlining your operations management and increasing efficiency. We provide the most comprehensive and straight forward solutions to the trade finance space right now, as an invested partner in your business growth. Technology at this level will bring our clients into the future of trade finance.

For a more in-depth look at our holistic products, check out the brand new LiquidX website. You’ll find educational thought leadership content and the full scope of functionality of our digitization technology available. To learn more about our industry-leading, end-to-end digitization tools using the latest and most advanced tech available today, request a demo.