Olivier Paul, Director, Finance for Development at the International Chamber of Commerce (ICC), features in Trade Finance Global’s latest Trade Finance Talks podcast, to discuss the unintended consequences of regulation on trade finance.
Following the release of an ICC report on the topic, the podcast elaborated on the key steps to ensuring that regulation does not hinder the provision of trade finance, including the growing importance of digitalisation.
To listen to the podcast, please click here.
Commerzbank and Landesbank Baden-Württemberg (LBBW) have recently – for the first time – successfully executed the necessary data transfers to complete two commercial transactions via blockchain-based trade finance network Marco Polo.
“The transaction proves that blockchain technology offers our clients state-of-the-art financing for trade transactions,” says Nikolaus Giesbert, divisional board member for Trade Finance & Cash Management at Commerzbank. “We see a valuable opportunity here to work together to develop and bring to the market innovative trade finance solutions.”
News of the transaction was covered by: Banking Technology, Bitcoin Exchange Guide, BlockTribune, CMTFile, Coin Speaker, Coin Telegraph, CoinDesk, Der Treasurer, Disruption Banking, Financialit, FinExtra, Fintech Finance, FinTech Futures, Global Treasurer, Global Trade Review, Ledger Insight, The Paypers, TokenPost, Trade Finance Global, TRF News, TXF, TXF tracker (behind paywall), & Yahoo
Natixis has joined a new venture, komgo SA, a blockchain platform set to digitalise the trade and commodities finance sector. The venture, founded by Natixis and 14 of the world’s other largest institutions, aims to build an innovative, open and efficient network within commodity trading, optimising the flow of physical commodity operations.
The platform will be developed in partnership with ConsenSys, the largest formation of technologists and entrepreneurs building applications, infrastructure, and solutions on the Ethereum network.
The news was covered by the Financial Times, Bloomberg, Reuters, TXF, Fintech Futures, Coin Telegraph, Block Tribune, Ledger Insights, Coin Rivet, Finextra, Coindesk, Bitcoin Magazine, Crypto Vest, ETH News
In a special report on AI and technology in operations by P&I, Matthew Seymour, CEO of RiskFirst, describes some of the challenges of technology adoption and standardisation in the asset servicing industry. The report examines how the ongoing development of technologies – such as blockchain and AI – could not only drive efficiencies but also serve as a catalyst, encouraging all market participants to speak the same transactional language.
Seymour noted, however, that “cooperation among major players in the industry isn’t a given”. He said: “The biggest challenge is the vested interest of financial services market participants. Accepting AI will require some to change their businesses. Right now, the collection of data is a real gold mine for some companies. Their concern about maintaining or growing their data businesses, at the same time as AI and blockchain, will make data more accessible to everyone, will make the adoption of new technology more measured while firms assess how this will affect their business models. It’s not just technology adapting to business, but business adapting to technology.”
To read the full article, please click here. (Please note, this article lies behind a paywall).
In an article for The Banker, Mark Evans – member of the International Chamber of Commerce (ICC) Banking Commission Executive Committee and Managing Director, transaction banking, at ANZ – comments on the benefits of blockchain in trade finance.
Evans says that Distributed Ledger Technology (DLT) “enables every participant in the chain to be able to see all transactions or touch points in one ‘block’ of information. This provides a high level of visibility and transparency to the progress of the transaction.”
To read the article in full, please click here.
In a commentary article for BNamericas, Dino Sani, Head of Treasury Services Latin America, discusses how regulation technology – or “regtech” – can enhance regulatory processes in Latin American banking. He examines the challenges banks are facing due to heightened compliance demands, the growing interest in regtech across the industry, and how regtech tools such as AI and blockchain technology could help to decrease compliance costs and improve efficiency.
To read the full article, please click here (please note, this article lies behind a paywall).
The first such transaction involving a large German company, Commerzbank’s €500,000 deal was covered by Reuters, Banking Technology, The Trade, IBS Intelligence, coindesk, 4-traders, Blockchain News, The Blockchain, CoinShot, Blockshapers, The Paypers, Cypto Currency News, RTT News, coinzdaily, Econotimes Blockchain Revolution, Cryptocy News, Bitnews Today, Coin Telegraph, cryptovest, Finextra and Profit & Loss.
The recent completion of SWIFT’s ground-breaking proof of concept (PoC), which tested the application and potential of distributed ledger technology (DLT) for nostro reconcilitation, has given the 34 financial institutions involved, amongst them being Deutsche Bank, much to consider. The blockchain technology was tested in a sandbox environment throughout 2017 and proved it can, as expected, help to deliver real-time liquidity monitoring and reconciliation. This said, the effective application of the technology is largely dependent on, and thus limited by, a bank’s existing system infrastructure and business models.
Reflecting on the results of the PoC in discussion with Banking Technology, Andreas Hauser, Senior Business Product Manager for Intraday Liquidity Management, Cash Management, Deutsche Bank, assesses that “DLT shows promise [but] unanswered questions remain”, particularly regarding the “considerable prerequisites” involved in adopting the program.
Hauser also points out that “what really drives value for nostro real-time liquidity monitoring and reconciliation isn’t the blockchain technology itself”: similar results could be achieved by connecting the pre-existing systems of the provider and user via APIs. Hauser concludes that “the clearest benefits are expected for financial institutions – typically medium-sized, regional banks of investment firms – with a higher dependency on nostro services”.
Read the full article at Banking Technology here.
Writing for The Paypers’ 2018 edition of its “B2B Fintech: Payments, Supply Chain Finance and E-Invoicing Market Guide”, BNY Mellon’s Karen Braithwaite, Head of Global Product Management, Treasury Services and Carl Slabicki, Director, Immediate Payments, Treasury Services, discuss the momentum behind the adoption of real-time payments (RTP) across the world.
Sparked by client demand for a payment service that meets modern expectations for speed, together with technological advancements and the influx of fintechs entering the marketplace, countries across the globe are transforming their domestic transaction capabilities by implementing new real-time payment rails. What’s more, with the potential for such systems to be connected to other initiatives, such as SWIFT gpi, blockchain technology, ISO 20022 standardisation and mobile transactions, there is scope for added reach, efficiencies and value that could further revolutionise the payments sector.
To read The Paypers’ “B2B Fintech: Payments, Supply Chain Finance and E-Commerce Market Guide”, please click here. The article is featured on pp. 34-35.