LiquidX Announces InBlock Digital Policy Management for Trade Credit Insurance

The trade credit insurance ecosystem loses over a billion dollars annually due to process inefficiencies, lack of transparency, and human error. InBlock Digital Policy Management leverages blockchain technology, AI, and machine learning, allowing market participants to reduce risk, increase efficiency, and scale through automation.

New York, NY – October 21, 2021 – LiquidX, the global fintech solutions provider for working capital, trade finance, and insurance, continues to break new ground with market-changing trade credit insurance technology. After pioneering the world’s first digital trade credit insurance platform, LiquidX today announced the launch of its InBlock Digital Policy Management pilot for trade credit insurance. This solution leverages Distributed Ledger Technology (DLT), smart contract technology, and AI, integrating trade credit insurance policies into financial workflows for the first time and automating critical policy management and compliance processes.

LiquidX partnered with a financial institution and a corporate to design a solution that automates the management of multi-buyer and single-buyer insurance programs while maximizing the effectiveness and user experience of this innovative technology.

“This is a watershed moment for trade credit insurance. We built InBlock to do the hard work of digitizing and automating manual processes across the entire working capital ecosystem. Trade credit insurance, which has traditionally been user-intensive and not integrated into finance systems, is a great use case for InBlock,” said Jim Toffey, CEO of LiquidX. “Five years from now, we will look back and wonder how policies were ever managed prior to InBlock Digital Policy Management.”

Digitizing an insurance policy on InBlock creates a self-executing smart contract allowing brokers and their clients to confirm coverage eligibility at the invoice level, authenticate debtors, and automate the manual and resource-heavy day-to-day policy management and compliance processes. The result is unparalleled insight and transparency into a policy, or portfolio of policies, while providing the tools to manage all components of insured transactions in one centralized platform, regardless of geography, product, or broker.

“The challenges of the past two years have emphasized the need for a coherent digital strategy, and clients are demanding more from their brokers and insurers. Our InBlock Digital Policy Management solution not only increases efficiency and scalability for all constituents, but more importantly, the transparency it provides mitigates operational risks across the value chain. Insured parties and their lenders gain confidence a policy will perform, insurers gain a real-time view of actual value at risk, and brokers benefit from reduced E&O exposure by the automation of critically important policy compliance requirements,” said Todd Lynady, Managing Director; Global Head of Insurance at LiquidX.

Inblock Digital Policy Management will be released to the wider market in early 2022.

LiquidX at UN Conference on Blockchain in Capital Markets

Blockchain Creates Deeper, More Efficient Digital Networks that Expand Access to Capital 

LiquidX CEO Jim Toffey spoke on “The Future of Capital Markets” at the Global Blockchain Business Council’s 4th annual Blockchain Central UNGA Conference September 16-17, 2021. The Global Blockchain Business Council (GBBC) is the leading industry association for the blockchain technology ecosystem and hosted the conference alongside the United Nations General Assembly (UNGA) as an official partner of the UN Foundation’s Global Goals Week.

Jim Toffey joined Michael Moro, CEO of Genesis Global Trading; Brendan Howe, Head of Blockchain at VMWare; Patrick Leary, Financial Crimes Risk Management at Wells Fargo; and moderator Reena Sahni, Partner at Shearman & Sterling LLP for a discussion that centered on the role of blockchain and distributed ledger technology to innovate and impact global capital markets.

“We are building an online digital network to connect people who need capital with people who have capital,” explained Jim Toffey. “There are very mature capital markets – for bonds and commercial paper for example – but the further you go downstream the more challenging it becomes. What is the asset if it is a piece of paper? How do you know it is real and what the other side knows? If you digitize the asset, both parties can be linked and agree on that asset.”

Several Fundamental Benefits

The presenters discussed how blockchain and Distributed Ledger Technology (DLT) can improve capital markets in several ways, including:

  • Efficiency. A digital infrastructure enables a more efficient data sharing platform, with verified trusted data sources open to all. With one set of data for transactions and bookkeeping, each party does not need to maintain separate ledgers. Finance providers can work faster, expand their product offerings, and better service their customers. In an online capital market, once identity and an asset are verified, the relationship changes from one-to-one to one-to-many. Borrowers can request funds from a group of lenders, receive quotes, and go straight to the transaction,” said Jim Toffey.
  • Inclusion. Private, permissioned blockchain is improving the reach of capital markets to a broader range of participants. Purely decentralized architecture allows multiparty arrangements and reach that was previously not possible. “The pieces of the technology puzzle are coming together to allow for credit to be extended more quickly and to reach much further – creating a deeper, more liquid market,” said Jim Toffey. “For example, we work with companies that have ten thousand companies in their supply chain network. Any disruption can have a huge ripple. From a credit standpoint, this means that there are many suppliers downstream that need credit and capital to supply goods to the next person up the food chain. There are many finance options – Supply Chain, Accounts Receivable and Inventory Finance – but at the end of the day it is about extending credit and I see a much deeper network that connects the people that extend credit to those that need it.”
  • Risk Reduction. With a decentralized, transparent network, banks and other counterparties will know their exposure to each other. Likewise, the Fed will also have a better view of risk in the system. With digital identity tools, Know Your Customer (KYC) checks can happen in real time and are less subject to fraud.

Yet, Challenges Exist

The group agreed that the pace of change will be gradual rather than sudden, like the early days of the internet when “everyone was trying to figure how things like the news and music would work on the new platform. Companies will figure it out as benefits become obvious,” said one panelist.

The main challenges impacting the rate of development include:

  • Technology Stack. Blockchain and DLT is only one part of the puzzle. Several technologies must be put into place to enable fully digital capital markets, including tech that validates identity while maintaining privacy and security standards.
  • Standards. A fully developed, digital capital market network will encompass many participants. Closed, single source solutions are not feasible at scale. Therefore, interoperability standards will need to be developed for all to access the market confidently.
  • Regulatory Framework and Role of Traditional Banks. Laws and regulation will need to adapt to digital markets, and changes that boost the comfort of larger players. All major financial institutions are already looking closely at blockchain and DLT technology, and they will move faster once there is regulatory clarity.

When Will the U.S. Hit the Inflection Point?

As the largest financial marketplace in the world, the panelists agreed that capital to support the further development of blockchain and DLT will largely come from the U.S. However, on the implementation side, the U.S. may not be the leader due to tempo of regulatory change in this country. As one panelist stated, the U.S. has the most to lose due to its massive size, so it is not a bad idea to sit back and wait until best practices are evident.

Jim Toffey added, “I’ve been doing this for 30 years. In the beginning it seems like change is never going to come, and then boom – you hit an inflection point. A few years from now, people will have a hard time remembering what things were like before this big change. Over the next five years, I can see a dramatic shift in the capital credit network of trade, trade finance, and insurance as all these pieces come together.”

The Blockchain Central “Future of Capital Markets” panel and other presentations can be found at this link.

Coface Singapore – First Insurer in Asia-Pacific to Join the LiquidX Digital Trade Credit Insurance Platform

NEW YORK, August 2, 2021 – LiquidX, the global fintech solutions provider for working capital, trade finance, and insurance, today announced that Coface Singapore Branch has joined its LiquidX 360 digital platform. The state-of-the-art tech platform offers enhanced operational efficiency and transparency for all participants in the trade credit insurance market, including carriers, brokers, and policyholders.

Coface Singapore is the first carrier in the region to join the platform since LiquidX was granted an insurance brokerage license from the Monetary Authority of Singapore in June 2021. This move marks the first step for LiquidX in replicating its successful business model in the United States. The majority of trade credit insurance carriers in the U.S., representing 80% of market premium, are active on LiquidX 360 platform. Todd Lynady, Global Head of Insurance at LiquidX, added, “Trade Credit Insurance is in great demand and highly valued by companies in Asia Pacific. We are very happy to welcome Coface Singapore as the first insurance carrier to join the platform in the region.”

“There’s no doubt that digital technology presents new opportunities for our industry and we are delighted to join the LiquidX platform,” said Graham Crozier, Country Manager of Coface Singapore. “We are ‘for trade,’ meaning we’re committed to adapt to where our services are needed most in support of effective local, regional and global trade.”

The LiquidX 360 platform digitizes trade insurance policies to automatically cross-reference policy terms and conditions and authenticate the eligibility of endorsed buyers. It provides unparalleled insight and transparency into a policy, or portfolio of policies, while providing the tools to manage all components of insured transactions in one centralized platform, regardless of geography, product, or broker.

“Coface is an established leader in Trade Credit Insurance and one of the first carriers to invest in the digital transformation of our industry, so it’s no surprise they are at the forefront of innovation in this space,” said Alex Bursak, Regional Head of Insurance Asia Pacific at LiquidX. “We look forward to working with the Coface Singapore team to deliver best in class solutions for banks, corporates, and asset managers to mitigate their trade credit risk across this growth region.”

Coface: for trade
With 75 years of experience and the most extensive international network, Coface is a leader in trade credit insurance and adjacent specialty services, including Factoring, Debt Collection, Single Risk insurance, Bonding and Information services. Coface’s experts work to the beat of the global economy, helping ~50,000 clients in 100 countries build successful, growing, and dynamic businesses across the world. Coface helps companies in their credit decisions. The Group’s services and solutions strengthen their ability to sell by protecting them against the risks of non-payment in their domestic and export markets. In 2020, Coface employed ~4,450 people and registered a turnover of €1.45 billion.

www.coface.com
COFACE SA is listed on Compartment A of Euronext Paris.
ISIN Code: FR0010667147 / Mnemonic: COFA.

Coface Singapore branch
Coface Singapore branch is a general insurance company, licensed under the Singapore Insurance Act (Cap. 142). As an integral part of providing trade credit insurance solutions, Coface Singapore branch also provides assessments on credit risk of trade counterparties of their policyholders. These assessments are provided for trade purposes and are not intended to be relied upon for investment, for activities in the securities and futures industry, extension of loan or for other regulatory purposes.

Media Contacts:
Karen YIK – T. +852 2585 9121 karen.yik@coface.com
Leo CHAK – T. +852 2585 9132 leo.chak@coface.com

About LiquidX
LiquidX is a leading global technology company that enables finance professionals to transact faster, smarter, and cheaper by digitizing their trade finance and working capital management. Headquartered in New York with offices in Boston, London, and Singapore, LiquidX delivers the industry-leading ecosystem for working capital assets to its diverse network of global participants including multinational corporations, banks, institutional investors, and insurance providers. LiquidX incorporates blockchain technology and machine learning analytics to greatly enhance transparency, reporting, and forecasting for finance professionals.

Media Contact:
Sue Hinton – T. +1 917 362 4518, shinton@liquidx.com

Keith Raymond Joins LiquidX to Further Expand Market for InBlock Digital Working Capital Platform

NEW YORK, NY – July 27, 2021 – LiquidX, the global fintech solutions provider for working capital, trade finance, and insurance, today announced the appointment of Keith Raymond as Managing Director, InBlock Sales. Mr. Raymond will lead the commercial expansion of LiquidX’s ground-breaking InBlock digital working capital platform. The cloud-based InBlock platform uses leading technology to automate and optimize working capital management, providing CFOs with the opportunity to reduce the cost of their accounts receivable and accounts payable, improve the cash conversion cycle, and reduce fraud risk.

Mr. Raymond has over 15 years of experience managing functions, processes, and teams within numerous software vendors in the Corporate Finance and Treasury space, with roles ranging from sales management, sales and marketing strategy, account management, and product management. In addition to his sales experience, he also established and managed corporate Treasury, Accounts, Accounts Payable and Accounts Receivable departments.

“InBlock helps corporates leap ahead in their digital journeys to work faster, smarter, and cheaper. We are excited to have Keith leverage his expertise in this space to scale the only end-to-end working capital solution on the market,” said Jim Toffey, CEO of LiquidX.

“We are thrilled to welcome Keith to our growing team,” said Ali Hackett, Chief Revenue Officer of LiquidX. “Keith’s history of success selling SaaS software subscriptions and consulting services to global corporates and financial institutions will greatly contribute to the expansion of InBlock.”

InBlock is the only working capital platform that connects the inventory, purchase order, and invoicing for buyers and suppliers using distributed ledger technology (DLT) to link the digital records for operational management, monetization, and insurance.

About LiquidX

LiquidX is a leading global technology company that enables finance professionals to transact faster, smarter, and cheaper by digitizing and automating their trade finance and working capital management. Headquartered in New York with offices in Boston, London, and Singapore, LiquidX delivers the industry-leading ecosystem for working capital optimization to its diverse network of global participants including corporations, banks, institutional investors, and insurance providers. LiquidX incorporates blockchain technology and machine learning analytics to greatly enhance transparency, reporting, and forecasting for financial professionals. To learn more about our next-generation solutions please visit liquidx.com.

LiquidX Names Kristen Michaud Head of InBlock and Member of Management Team

NEW YORK, NY – July 8, 2021 – LiquidX, the global fintech solutions provider for working capital, trade finance, and insurance, today announced that Kristen Michaud will lead its InBlock business and join the Senior Management Team. Ms. Michaud, a thought leader and innovator in Corporate Treasury with over 20 years of experience in Treasury, Payments, and Financial Systems, has been leading the development of InBlock since she joined LiquidX. The cloud-based InBlock solution employs Artificial Intelligence and Distributed Ledger Technology to optimize working capital management for corporates, banks, and insurers.

“Kristen has taken everything she wished would make her life better in her prior corporate roles and put it into InBlock. Her knowledge and leadership, combined with our next-generation technology, has produced a truly market-disrupting product,” said Jim Toffey, CEO of LiquidX. “As LiquidX continues its phenomenal growth path, we will benefit from Kristen’s talents on our leadership team.”

“I am thrilled to take on broader responsibility across InBlock and join the Senior Management Team. InBlock brings the only technology solution to corporates, banks, and insurers that can truly transform their working capital processes,” said Kristen Michaud, Head of InBlock.

Ms. Michaud has over 20 years of experience in Treasury, Payments, and Financial Systems, most recently at General Electric (GE) where she was responsible for Global Cash Operations including cash infrastructure, controls, and digital transformation. She has delivered large scale transformation efforts for GE including establishing the Treasury digital strategy, payment transformation, and establishing Treasury capabilities in the shared service centers. Prior to GE, Ms. Michaud worked at International Business Machines (IBM) where she held leadership roles in Global Financial Systems, Treasury, and Business Consulting. She is a frequent speaker on the topics of payments, cash management, working capital, blockchain, and digital transformation.

InBlock is a LiquidX product that ingests, digitizes, and automates the management of purchase orders, invoices, insurance policies, loans, or any other trade finance assets. InBlock enables digital connectivity to participants throughout the supply chain, including customers, vendors, finance providers, and insurers providing shared visibility by leveraging distributed ledger technology (DLT). “InBlocking” an invoice carries the benefits of verification, connected data, integrated APIs for updates, and a flexible, operational workflow that facilitates the management of the invoice through its lifecycle. Corporates benefit from the flexibility to monetize the digital invoice, while banks and insurers benefit from a digital asset carrying the history of origination and actions taken against it.

About LiquidX

LiquidX is a leading global technology company that enables finance professionals to transact faster, smarter, and cheaper by digitizing and automating their trade finance and working capital management. Headquartered in New York with offices in Boston, London, and Singapore, LiquidX delivers the industry-leading ecosystem for working capital optimization to its diverse network of global participants including corporations, banks, institutional investors, and insurance providers. LiquidX incorporates blockchain technology and machine learning analytics to greatly enhance transparency, reporting, and forecasting for financial professionals.

Monetary Authority of Singapore Grants Brokerage License to LiquidX, Paving Way for Further Expansion in Asia

New York, NY – June 29, 2021 – LiquidX, the global fintech solutions provider for working capital, trade finance, and insurance today announced that its Singapore entity, LiquidX Insurance Services (Singapore) Pte. Ltd. (LISS), has received approval from the Monetary Authority of Singapore (MAS) to offer insurance brokerage services in the country. Alex Bursak, Director and Regional Head of Insurance Asia Pacific at LiquidX, was named Director of the program.

LISS can now help banks, asset managers and funds, and corporates of all sizes in Singapore to access, automate, and streamline Trade Credit Insurance coverage via the LiquidX 360 platform. The digital platform serves the entire Trade Credit Insurance value chain for quoting, policy management, and risk monitoring. LiquidX 360 is the only solution that integrates Trade Credit Insurance with next-generation capabilities for buying, selling, and managing Accounts Receivable and other trade finance assets on the same platform.

The Trade Credit Insurance market is estimated to roughly double in size from 2021 to 2027, from $9 to 18 billion, due to its role of mitigating trade risk in uncertain economic environments. By 2025, LiquidX estimates that between 30% – 50% of Trade Credit Insurance will be originated, managed, and transacted online. The LiquidX 360 proprietary platform will fuel a significant portion of this online growth.

“The MAS license is a huge milestone for our business in Asia,” said Jim Toffey, CEO of LiquidX. “With a growing market for Trade Credit Insurance, carriers and brokers are looking to technology to scale their growth, cut expenses, and digitally connect with their partners and policyholders. In addition, funders and corporates that manage and finance working capital on our platform can now seamlessly integrate Trade Credit Insurance coverage. We are thrilled that our technology is making the whole trade ecosystem run more efficiently.”

“We are honored and excited to be registered as an insurance broker by MAS, which will allow us to strengthen our position as the global leader in digitizing the Trade Credit Insurance market. As a key trading and finance hub in Asia, Singapore will continue to be an accelerator for our best-in-class tech-focused LiquidX 360 platform,” said Alex Bursak, Director and Regional Head of Insurance Asia Pacific at LiquidX.

 About LiquidX
LiquidX is a leading global technology company that enables finance professionals to transact faster, smarter, and cheaper by digitizing and automating their trade finance and working capital management. Headquartered in New York with offices in Boston, London, and Singapore, LiquidX delivers the industry-leading ecosystem for working capital optimization to its diverse network of global participants including corporations, banks, institutional investors, and insurance providers. LiquidX incorporates blockchain technology and machine learning analytics to greatly enhance transparency, reporting, and forecasting for financial professionals.