The Dutch bank is now using the latest version of the Norwegian software vendor’s IBAS GTF – Global Trade Finance Factory to run its global trade finance operations, the companies said in a Monday (July 3) press release.
“As a result of our close collaboration we expect to benefit from increased efficiency and automation, lower operational risk and a reduction in our total cost of ownership,” Burak Aslan, lead product owner personal and business banking, transaction banking and trade finance at ABN AMRO Bank, said in the release. “The new developments will allow us to onboard new customers more quickly and further improve the customer experience, putting us in a good position to scale our global trade finance operations.”
This launch follows the renewal of a five-year partnership agreement in which ABN AMRO Bank and CBA are collaborating to automate trade finance processes, according to the press release.
The new release of IBAS GTF routes trade finance payments to the bank’s central payment hub in compliance with ISO 20022 CBPR+ standards, supports other SWIFT updates and delivers convenient customer journeys to the bank’s customers, the release said.
“Our mission at CBA is to help banks realize real efficiency savings, using our software to streamline and simplify their global banking operations,” CBA CEO Rolf Hauge said in the release. “The five-year development and cooperation agreement between CBA and ABN AMRO Bank is a result of the deep and successful business relationship we have created and embodies a further long-term commitment from both parties.”
Digital technologies are driving innovation in trade finance, enabling faster decision-making and more streamlined processes, PYMNTS reported in January.
In the past, trade finance was bogged down by lengthy risk assessment and underwriting processes, and accessing credit could take days or weeks. But as the digital toolkit deployed by banks and their partners has grown, the lending process is increasingly accelerated, and many trade finance loans can now be approved and paid on the same day.
In another recent development, trade finance provider Cleareye.ai said on June 20 that it has received a strategic investment from J.P. Morgan and will offer trade finance solutions for the banking giant and its clients around the world.
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