The Global Supply Chain Finance Forum – an initiative comprising the ICC Banking Commission, BAFT, EBA, FCI and ITFA – has appointed Christian Hausherr, European Product Head of Supply Chain Finance at Deutsche Bank, as its Chair.
The GSCFF was established in 2014 to develop, publish and champion a set of commonly agreed standard market definitions for Supply Chain Finance. In turn, Hausherr – as a recognised expert in the field of SCF – has taken a leading role in the drafting of the GSCFF’s Standard Definitions for Techniques of Supply Chain Finance, as well as the Wolfsberg/ICC/BAFT Trade Finance Principles.
The news was covered by GTR, TXF, TRF News, Supply Chain Digital, SCF Briefing, Finextra, Fintech Finance, Financial IT, Fintech Insight.
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.
Corporate treasurers have already taken significant steps to fortify their cybercrime defences however, chinks in the armour of many treasury departments still remain – mainly in the form of third parties.
Indeed, according to research undertaken by the Economist Intelligence Unit (EIU), whom surveyed more than 300 corporate treasury executives on their existing cybersecurity defence mechanisms, 19% of companies still do not check whether their suppliers use the same methods for identity authentication as they do. They have not, for example, asked whether suppliers have secure email systems to protect confidential information, or whether they offer the ability to check the IP addresses of log-ins to match them with preassigned, or “white-listed” addresses.
Writing in Treasury and Risk, Dave Watson, Deutsche Bank’s Global Head of Digital Cash Products, and Americas Head of Cash Management for Deutsche Bank GTB business, explains how such gaps leave the door open for imposter fraud in which hackers attempt to manipulate payment instructions, either by posing as a supplier and sending fraudulent invoices or by altering the payment instructions of legitimate invoices in order to redirect funds to a different account.
For Watson, avoiding falling victim to such incidents is a matter of working with supply chain partners to jointly tighten security protocols. “Basic steps include ensuring third parties use a secure email system, including two-factor authentication (or equivalent) to verify that employees of the supplier are who they say they are. In addition, companies should check whether their suppliers track the IP addresses of those entering their treasury management or email systems.”
After all, a chain is only as strong as its weakest link.
To read the full article, please click here.
In an increasingly competitive supply chain finance ecosystem – consisting of banks, non-banks, and a combination of the two – what makes a payables finance programme ‘successful’? And how can corporate treasurers select an effective provider?
Writing in TMI, Anil Walia, Deutsche Bank’s Head of Financial Supply Chain, EMEA, suggests that corporates should base their search for an effective provider on three simple criteria: Is the payables finance programme easy to set up (and how is technology facilitating this)? Can the provider successfully on-board suppliers across all relevant geographies (and how is technology being used to make this more efficient)? And perhaps most importantly, is the offering structurally sound and sustainable?
Even as emerging new technologies, such as blockchain and artificial intelligence, continue to broaden the current and future options available to corporate treasurers, Walia argues the “fundamental questions a corporate must ask of their provider remain the same”.
To read the full article, please click here.
Deutsche Bank has picked up a record-breaking total of 46 awards in The Asset’s 2018 “Treasury, Trade, Supply Chain and Risk Management Awards”, exceeding the 2017 total (a previous record) by seven awards.
Running for close to 20 years, The Asset’s awards offer pre-eminent recognition in Asia for those seen to have excelled in corporate treasury management, trade finance and the supply chain finance space on both an in-country, regional and global level. With client feedback acting as a cornerstone of the evaluation process (obtained through The Asset’s annual Treasury Review Survey and specific client solution interviews), the results are a fantastic recognition of Deutsche Bank’s dedication to service quality, and stand as testament to the bank’s strength across products, divisions, and countries in Asia Pacific.
Deutsche Bank amassed a total of 23 Awards for specific client solutions in the treasury management, trade finance, supply chain finance and e-solution space, while also scooping “Best Bank for Working Capital Solutions and Trade Finance” in South Asia, on top of an additional 20 country-level banking awards.
The bank added two further wins through its clients in the “Industry Achievement and Leadership” award category. Fiona Zhang, Head of Treasury at Education First, was awarded “Treasurer of the Year (China)” on the back of her implementation of a suite of Deutsche Bank solutions designed to enhance Education First’s operational and liquidity efficiency in China. In addition, American Express India won “Treasury Team of the Year”, in recognition of its development – in partnership with Deutsche Bank – of a truly innovative, digitally-enabled regional treasury centre in Asia Pacific.
More to come? The winners of The Asset’s most coveted awards including “Best Bank in Risk Management in Asia”, “Best Bank in Treasury and Cash Management in Asia”, “Best Bank in Working Capital and Trade Finance in Asia”, “Best Supply Chain Bank in Asia” and “Best Transaction Bank in Asia” will be announced at the end of April with Deutsche Bank shortlisted for every one of these awards. Watch this space.
For full details of the Deutsche Bank win, please click here.
Deutsche Bank has been voted Asia-Pacific’s best supply chain finance provider by an independent survey conducted by East & Partners Asia, a leading specialist market research firm in the corporate and investment banking markets, in collaboration with Corporate Treasurer magazine.
The “Voice of the 1000” surveyed the region’s top 1,000 institutions, as measured by annual revenues, in each of the following country markets: China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand.
Carmen Chan, Regional Head of Financial Supply Chain Asia, Global Transaction Banking, Deutsche Bank: “We have worked hard on growing our supply chain finance business in Asia, specifically with respect to payables finance, with a keen focus on excellent service predicated by a strong local presence, efficient onboarding, a global-friendly platform, and a cross-border funding model. This recognition, from the region’s leading treasurers and chief financial officers, is quantitative proof that our approach is working, and we are delighted.”
Full results can be found at Corporate Treasurer’s website here.
How can payables finance reach its potential? How can it help to plug the trade finance gap – 74% of which is accounted for by small and medium-sized enterprises (SMEs) and mid-caps, and 40% of which originates in the Asia-Pacific region? And what role can new technologies play in the payables finance business?
Bringing together leading professional from across the banking, fin-tech, and insurance space, BCR’s 3rd World Supply Chain Finance Summit, hosted in Frankfurt between the 31 January and 1 February 2018, fostered debate and discussion around such fundamental industry questions.
While recognising the long-term potential of innovative new technologies such as blockchain technology, discussions at the Summit made it clear that providers need to remain focused on developments and changes they can make in the here and now. In the short-term, it was agreed that standardisation, access to, and more effective utilisation of data, and improved industry-wide collaboration, held the key to market growth.
A full report of the World Supply Chain Finance Summit is featured in Deutsche Bank’s Flow.
SWIFT’s global payments innovation (SWIFT gpi) is tipped to become the universal cross-border payment standard. Before this happens, however, more banks must enter the initiative’s go-live phase. In an article for GTNews, Paula Roels, Head of Market Infrastructure & Industry Initiatives, Cash Management, Deutsche Bank, makes the case for becoming SWIFT gpi-ready.
Read the article here.
When faced with the choice of cash to fund a corporate finance strategy or cash to meet a 30-day supplier schedule, the revenue-generating activity will obviously be more alluring. However, while extending payment terms makes it possible to grow cash mountains, what happens if the supplier goes out of business while they wait?
Enter payables finance – a buyer-led supply chain finance technique through which sellers in a buyer’s supply chain can receive the discounted value of its receivables (represented by outstanding invoices) before the due date, and typically at a more attractive rate than it could normally obtain (the financing cost is aligned with the higher credit rating of the buyer).
Two decades since the birth of the payables finance business, the market has grown rapidly – both in terms of size and scope. At Deutsche Bank, payables finance has become the fastest growing business line within the trade finance product family. Moreover, while, dominance still resides largely with five or six global banks, a new generation of non-bank platform providers have also significantly increased their share of the market – advertising enhanced digital interfaces, simplified implementation processes, and new business models (such as those focusing on smaller suppliers, offering auction based solutions, and those incorporating dynamic discounting).
Deutsche Bank’s new publication, “Payables Finance: A guide to working capital optimisation”, which brings together experts from across the supply chain landscape, sets out to explain the progress of this remarkable business to its current position as a core supply chain management and working capital tool – and to address its potential going forward.
Significantly, the publication defines exactly what makes a successful payables finance programme in an increasingly complex ecosystem of buyers, providers, and financiers and explains how payables finance is helping to bridge the US$1.5trn shortfall in global trade finance (as reported by the Asian Development Bank).
To read more, please click here
The ‘success’ of a buyer-led supply chain finance (SCF) programme is often measured by the efficiency and speed of the on-boarding process. A well-executed programme will: clearly communicate the working capital benefits to the suppliers; enrol them quickly and in number; and put little burden on suppliers to ensure the outcome is positive for all.
However, writing in BCR’s World Supply Chain Finance Report 2018, Deutsche Bank’s Head of Financial Supply Chain, EMEA, argues the efficacy of supplier on-boarding should not be the only barometer of success.
“In today’s ever-more complex SCF market, a more holistic, long-term approach to measuring success is also required”, states Walia. “Both SCF providers, and corporate buyers, need to ensure they balance efficiency and nimbleness with programme safety, soundness and sustainability”.
To read more, please click here, p.24-26.