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Improving Business with Trade Finance Portfolio Management Solutions

Trade Finance Portfolio Management Solutions

By: LiquidX

Financial institutions have long since struggled with laborious and disjointed trade finance systems. Between the nagging demand for manpower, a lack of transparency and consistent processes, banks have been seeking solutions to streamline operations. In fact, concerns such as mounting operating costs have led banks to reduce their exposure to trade finance transactions. And while trade finance has been relatively slow to modernize its decades-old processes, experts note the power of blockchain and digitization to improve operations and ultimately encourage significant growth to the global trade industry. 

To digitize trade finance portfolio management is to accomplish more than simply reducing a paper trail. It reduces costs, increases productivity and improves processing times, helping businesses increase functionality and scalability. With the right software, banks can tackle the challenges of daily operations while focusing on bigger picture initiatives.

Digitize Transactions for Better Visibility and Risk Mitigation

With LiquidX’s trade finance portfolio management solutions, banks can now completely transform the way they run their middle- and back-offices. 

  • Remove the technology barrier holding back growth
  • Improve risk management
  • See and filter every invoice and credit position 
  • Allow blockchain validation to reduce fraud
  • Enjoy real-time compliance verification, KYC and ESG checks
  • Connect the dots: insurance policy to invoices, purchase orders to invoices, securitized facilities to invoices, and distributed assets to original history

LiquidX’s InBlock TradeHub product is the market’s first-ever real-time, digital middle- and back-office solution for position and risk management. It allows customers to aggregate their data across various investment programs and platforms, regardless of the origination source. Having visibility into assets and limits across multiple programs helps banks make better decisions and properly manage risk. With a holistic view of a bank’s aggregate exposure and risk profile, the bank can access critical information such as counterparty diversification, funding obligations by a partner bank, and program screening. 

TradeHub’s real-time asset status gives banks insights into payment behavior, boosting profitability for both banks and their clients. Leveraging AI and machine learning, TradeHub eliminates manual calculations, reconciliations and reporting, decreasing operational costs and increasing efficiency.

How a Global Bank Positioned Itself to Scale Their SCF Business

A global bank was looking to scale their supply chain finance business, but the reconciliation process was manual, requiring them to hire FTEs to scale. They turned to LiquidX’s trade finance portfolio management solutions, implementing our cutting-edge InBlock TradeHub software. 

Powered by a digitization engine, TradeHub eliminated the need for the bank’s back-office team to rekey invoice, payment and remittance advice details. The tool’s InMatch reconciliation feature matched all of the incoming receipts with their appropriate details. Unlike the bank’s prior manual process requiring macros and human intervention, InMatch was able to automatically match their invoices in seconds. Since the bank required an exact match on all cash flows, the system quickly flagged anomalies for the back-office analyst to resolve immediately and view repeat trends across the portfolio.  

Not only did InBlock streamline the back-office analyst’s job, but it also enabled the bank’s business unit leader to scale volumes for their business. It gave the team enhanced data analytics they could use to ultimately run their program better. The right trade finance software reduces costs and improves profitability, allowing companies to focus on growing their business. To learn more about LiquidX’s industry-leading TradeHub software, request a demo.