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What’s Next in Trade Finance Digitization?


by John Pfisterer

In today’s rapidly evolving digital landscape, it is undeniable that businesses must adapt and transform in order to remain competitive and relevant. Transformation is no longer a luxury, but a necessity. This palpable shift is rooted in a deliberate departure from the status quo, which has long been characterized by high costs, low transparency, and limited access to finance for small businesses, and instead, seizing the opportunity to rethink, redesign, and build a new system that uses technology to solve the legacy problems.

Digitization represents a broad cultural shift to more agile, intelligent ways of doing business. And, its benefits are measurable, with 84% of CFOs citing digitization has boosted their working capital, with other notable benefits including improved balance sheets and payments efficiency. 

The Power of Digitization

Digitization simplifies cumbersome processes and maximizes potential. It makes better business possible. It provides a turnkey operations solution that allows for business to be done faster, smarter and more efficiently through optimization – with better investment returns. 

One of the greatest boosts in efficiency occurs when advanced tools automate large portions of operational workflow, improving the profitability by 30-50%. This empowers businesses to save significant costs while having access to better real-time information to make smarter investment, risk, and compliance decisions. With a singular solution, the communication and connection between corporates and financial institutions becomes seamless, while mitigating cost.

How Can Digitization Transform Your Business?

In its most evolved state, “digitization” is so much more than just the evolution of a file. It takes your data, ingests it, structures it, organizes it, and normalizes it. True digital transformation requires taking a holistic approach to the solution by looking at the entire ecosystem instead of its siloed pieces.

The next five years are bound to be transformational because today, there are leading indicators that banks, CEOs and key decision makers are choosing to invest in digitization solutions more than ever before.

Perhaps the goal is to automate your operations by 50% because you prefer not to rely on traditional processes? That is where digital technology is employed to automate manual processes driven by excel spreadsheets, time-consuming email communications between multiple counterparties, and heavy paper trails that slow down the entire business process. With digitization, enhanced transparency, reporting, and forecasting are achieved seamlessly, opening up an entirely new world of possibilities for your business.

As paper, Excel sheets and PDFs are replaced by digital dashboards, simplified, streamlined processes and access to real-time information are becoming the way of the world, today.

LiquidX is Leaning Into Transformation

LiquidX has evolved into the market’s only single-source, comprehensive solution for empowering your entire, holistic trade finance business. We’ve taken the lead in bringing corporates and financial institutions to the next level in their operations. 

Using advanced technology, like machine learning, we have learned how to read all of your assets, extract the data, and automate your operations so you don’t even have to think about it.

In automating manual processes and eliminating operational challenges, the LiquidX platform merges every end point, from origin to settlement in one place, regardless of which platforms you’re using. As a result, higher operating margins in this class can be achieved, seamlessly. We are, at our core, an invested partner in your growth. 

Over the past few years, LiquidX has partnered with leading corporates from across the globe to power business through digitization. Our experiences and successes have proven that the industry’s transformation is here and now – no matter the scale of digitization. How are we so certain? Because we’re doing it already.

These two use cases exemplify how LiquidX has started to bring the future of trade finance to our partners today:

Digitization Applied: Improve Efficiency & Build Your Funding

A global technology company was on the search for a means to trade more efficiently without needing to invest time and resources into a heavy IT overhaul.

LiquidX met their desire to streamline and digitize with minimal operational interference. By allowing the client to use their own file export preference from their internal trade system to upload into our system, we were able to execute on their transactions without disrupting their own internal processes. The client successfully executed discounting activities layering in unique criteria and transactions without any sort of technical implementation or integration downtime, making their process frictionless and more efficient. The corporate client’s workflow ended upon file upload creating an easy trading experience. 

Similarly,  a global healthcare company was looking to digitize their trade processes under an AR program without undergoing a major technical investment. The company was focused on utilizing a lead bank structure with additional relationship banks in support.

For clients with existing trade finance infrastructure, like this one, LiquidX can deploy individual modules of our tech for transacting in a private, branded environment. We helped this client automate their  operations processes, providing visibility into the underlying assets in trade finance transactions – all while using their own internal templates. After they uploaded into our program, we were able to map their file formats and effectively smooth out their SCF transactions for them and all their counterparties.

The banking and financial services landscape is rapidly changing. In an industry that is built on technology solutions to solve financial issues, it is important to consider the power of true digitization and its ability to revolutionize efficiency and maximize business resilience. LiquidX recognizes that simplifying the way businesses approach scaling, mitigating risk and transparency makes a world of difference in growth capabilities. We are proud to lead our partners into the future with the forward-thinking technology we offer. Technology at this level will bring our clients into the future of trade finance. To learn more about how we can help, contact our team.