TSU/BPO: Is paper still essential for Trade transactions?

Transcription

1 /BPO: Is paper still essential for Trade transactions? SIBOS Boston - October 1, 2014 Daisuke Kamai Head of e-trade Product, Transaction Banking Division, The Bank of Tokyo-Mitsubishi UFJ, Ltd. Copyright NTT DATA Getronics Corporation Toshihiro Fukao General Manager, Financial Business Sales Department 3 NTT DATA Getronics Corporation

2 AGENDA Copyright NTT DATA Getronics Corporation About NTT DATA Getronics Current Issues in Trade Finance and /BPO Overview Case Study: 3 Steps of BTMU s approaches to /BPO BTMU and NTT DATA Getronics: 3 Steps toward providing the /BPO Service

3 Copyright NTT DATA Getronics Corporation 1. About NTT DATA Getronics Clients 3 Major Japanese Banks The Bank of Tokyo-Mitsubishi UFJ Japanese Branches of Foreign Financial Institutions Tier 3 Japanese Banks Japanese Securities Company Japanese Trust Banks Established September 21, 1960 Headquarter Tokyo, Japan Capital million yen Shareholders NTT DATA Corporation 70% Getronics Finance Holdings B.V. 30% Employees 587 Financial Solutions SWIFTNet BOJ-NET Connectivity Anti-Money Laundering Transaction Banking Business Solutions IT Services Smart Devices Solutions

4 Copyright NTT DATA Getronics Corporation 2. Current Issues in Trade Finance 1. WORKLOAD 2. OPERATION TIME 3. COST What could be issues of Letter of Credit (L/C)? TRANSACTION High volume of workload for both corporates and banks Longer operation time for document checking by using paper based L/C High costs to take Bank s L/C service for corporate customers Increasing of Open Account transactions Letters While it of might credit be are a dead. high-margin These days, business, only you around would 10% make of our business more money is based if you on go them, after yet the we lower still margin have banks mass constantly market approaching and listen to us your trying clients. to sell an expensive and complex product that doesn t suit our needs. Kah Chye Tan, chair of the ICC Banking Commission Gary Slawther, treasurer at Octal Petrochemicals /BPO can be one of the new solutions for these issues in Trade Finance.

5 2. Current Issues in Trade Finance Data Matching Irrevocable Undertaking Contract Contract Contract Buyer Seller Buyer Documents Seller Buyer Documents Seller Documents Application LC Issuing Bank Letter of Credit Documents Advice Copyright NTT DATA Getronics Corporation Documents LC Advising Bank Payment Bank services based on paper document processing Data BPO Obligor Bank Bank Payment Obligation Data Data BPO Recipient Bank Payment Bank services based on electronic trade data exchange Buyer s Bank Open Account Seller s Bank Payment Bank services limited to payment processing

6 Copyright NTT DATA Getronics Corporation SOURCE: Sept 4, 2014, Market adoption of BPO, SWIFT's Corporates and Supply Chain team 2. Current Issues in Trade Finance Counter Count Banking groups adopting BPO 58 Banking groups live on BPO 12 Corporates live on /BPO More than 30 Banking groups reachable on 84 BIC8s reachable on 166 BIC8s and BIC11s reachable on 250 Countries reachable on 47

7 Copyright NTT DATA Getronics Corporation 2. Current Issues in Trade Finance: Solutions Streamlining operational processes UR BPO ICC Uniform Rules Why /BPO has not been expanded yet? It is now in the phase of the /BPO expansion where these gaps exist. Why banks have not fill these gaps so far? Low awareness A few participating banks Its investment? There would be big bang approach or step-by-step approach. Approach Approach

8 3. Case Study: 3 Steps of BTMU s approaches to /BPO BTMU joined the TSAG (Trade Service Advisory Group ) 2003 BTMU successfully completed the prototype test 2004 SWIFT started the development of model for its promotion 2005 The Bank of Tokyo- Mitsubishi UFJ, Ltd. (BTMU) and NTT DATA Getronics have been working together toward providing the /BPO service to BTMU s clients rd Step BTMU released the Front-End System with NTT DATA Getronics s support Copyright NTT DATA Getronics Corporation BTMU started the testing for the commercial release with NTT DATA Getronics s support st Step BTMU started the service for corporate customers 2007 BTMU released the Process Management System with NTT DATA Getronics s support nd Step BTMU released the BPO support version of the Process Management System 2012 ICC ratified the URBPO by the International Chamber of Commerce 2013

9 Copyright NTT DATA Getronics Corporation 3. Case Study: 3 Steps of BTMU s approaches to /BPO BTMU commenced the service with minimum effort for their corporate customers by using the Standalone Alliance WebStation.

10 3. Case Study: 3 Steps of BTMU s approaches to /BPO Buyer Manage the whole process in the Seller Buyer s Bank Seller s Bank Reducing operational risks to avoid missing out an appropriate operational flow or missing documents: Consistency operational status management from the beginning of receiving Purchase Order (PO) data to these payments Reducing compliance risks through rigorous paperwork procedures: Using audit trail Copyright NTT DATA Getronics Corporation

11 Copyright NTT DATA Getronics Corporation 3. Case Study: 3 Steps of BTMU s approaches to /BPO IMPORTER IMPORT BANK EXPORT BANK EXPORTER Contract application Matching Result Matching Result application P/O copy Process Management System Data Input on Matching Result (Contract Info) Matching Result (Shipping Info) Settlement Process P/O Matching Matched Contract Data Matching Data Input on Matching Result (Contract Info) Data Input on Matching Result (Shipping Info) Transfer of Money Process Management System application P/O copy Bills-bought application Ship doc copy Contract application Matching Result Matching Result Receive Funds Shipping Document

12 3. Case Study: 3 Steps of BTMU s approaches to /BPO Process Management System SCREEN IMAGE Copyright NTT DATA Getronics Corporation FUNCTION OVERVIEW Status management Notification to clients Accept clients documentations Transaction trail reference Accepted reference data Settlement date management Data approval

13 Copyright NTT DATA Getronics Corporation SENDER IBBIWSW1XXX INTERNATIONAL BUSINESS BANK CORPORA SESSION 2222 ISN Field Name Tag Contents Transaction Reference Number 20 T Value Date, Currency Code, Amount 32A JPY /1111 Sender's Correspondent 53B CITIJPJTXXX Intermediary 56A BOTKJPJT / Account With Institution 57A DEUTJPJT Beneficiary Institution 58D / Beneficiary Institution 58A ABNANL2A SENDER IBBIWSW1XXX INTERNATIONAL BUSINESS BANK CORPORA SESSION 2222 ISN Field Name Tag Contents Transaction Reference Number 20 T Value Date, Currency Code, Amount 32A JPY /1111 Sender's Correspondent 53B CITIJPJTXXX Intermediary 56A BOTKJPJT / Account With Institution 57A DEUTJPJT Beneficiary Institution 58D / Beneficiary Institution 58A ABNANL2A 3. Case Study: 3 Steps of BTMU s approaches to /BPO The voice from corporates: Improving turnaround time. Reducing paper work MT202 GENERAL FINANCIAL INSTITUTION TRANSFER MT202 GENERAL FINANCIAL INSTITUTION TRANSFER Buyer Seller Manage the whole process in the Buyer s Bank Seller s Bank Timely and accurate status information can be delivered. Expand further operational streamlining.

14 Copyright NTT DATA Getronics Corporation 3. Case Study: 3 Steps of BTMU s approaches to /BPO BTMU Front-end System service has released in April 2014.

15 Copyright NTT DATA Getronics Corporation 3. Case Study: 3 Steps of BTMU s approaches to /BPO BTMU s Global Network (As of Sep2014) Live Ready Testing Planning London Paris Guangzhou Beijing Tokyo New York Karachi HK Shanghai Dubai BKK KL SGP Hanoi HCM JKT Taipei Manila Santiago Sao Paulo Sydney Buenos Aires

16 4. BTMU and NTT DATA Getronics: 3 Steps toward providing the /BPO Service 1 st Step BTMU: Established the /BPO operational flow based on L/C operational flows NTT DATA Getronics: Set up the SAB system Copyright NTT DATA Getronics Corporation 2 nd Step BTMU: Established the process management NTT DATA Getronics: System Development for the process management 3 rd Step BTMU: Increased the level of the services to their customer NTT DATA Getronics : System Development of the front-end system

17 4. BTMU and NTT DATA Getronics: 3 Steps toward providing the /BPO Service Copyright NTT DATA Getronics Corporation

18 Copyright 2011 NTT DATA Corporation Copyright NTT DATA Getronics Corporation