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Tesselate Group

Social and Environmental
Corporate banking
Responsible Trade Services for an agriculture cooperative
Social and Environmental
Corporate banking
Responsible Trade Services for an agriculture cooperative


## Inspiration
Many small and remote professionals are periodically facing serious crisis either economic or health crisis.
Our **“Greenfunding”** application wants to prove that the banking ecosystem can offer **solidarity financial services** as well as promoting the **ecological transition**.
Thus our mobile application allows any customer:
* to order any type of product especially for agricultural needs in our use-case through a farm cooperative;
* to secure the delivery upon payment through easy access to Trade Finance products (letter of credit);
* to help fund this purchase through Socially Responsible Syndicated Lending (via a network of solidarity enterprises);
* to offer a graduated discount for any effort to reduce the carbon footprint of the full operation;
* to have the opportunity to demonstrate that any small or medium professional can relaunch its activity and revitalize the local economy thanks to the combination of solidarities with the banks and with the support of the other companies.

Our mobile application also offers to the banking network the **opportunity to leverage on Finastra FFDC platform**.

## What it does
**“Greenfunding”** mobile app supports the customer for its end-to-end operation that is from the choice of its various products required for relaunching its activity up to its secured delivery through the collect of money required thanks to a solidarity network of lenders.

### Workflow:
We can use Greenfunding mobile app either from the **Customer side** or from the **Banking agent** side
#### Customer side: Order management
* For the first part of the process, the customer can create a securitized account then starts to create their order in selecting various products.
* For each product we assign a carbon footprint figure.
* Before resuming their order, the customer can select the means of transport which also has a carbon footprint assigned.
* Validation of the order: When the customer validates their order, the mobile app will calculate a rebate depending on the combination of the carbon footprint of the full operation including the supplier selected (0 to 15%).
* **This rebate is possible thanks to the international subsidies provided for promoting the ecologic transition**.

#### Banking side
* The agent studies the order and prepares the opening of a letter of credit with all elements required only after collecting the amount. If the customer needs to be funded, he will manage the solidarity collect in notifying the potential lenders.
* A deal and facilities will be created in the lending system.
* If the funding is raised then a syndicated loan will be created and the amount transferred to the customer account.
* Thus the letter of credit (LCI) will be opened in the Trade finance system and all elements required from the supplier and the beneficiary will be collected.
* If the LC-Import is validated then the delivery can be launched.
* The customer will get their goods in a securitized manner as well as the supplier paid regarding the contract agreed via the LCI.

### Gains for all the stakeholders
#### For the bank
* Gaining new clients (either as beneficiaries of the solidarity loan or lenders).
* Benefit of 2% of the loan amount just to cover the expenses of the full operation.
* Marketing operation for improving its reputation and its branding regarding its solidarity financial services and its contribution to promoting the ecologic transition.

#### For the beneficiary
* Project financing at a reduced rate.
* Payment with good conditions and securitization of the full operation thanks to the commitment of the bank via the LCI process.
* Possibility of discount for a good carbon balance.
* Choice of green products, green suppliers and green transport.

#### For the lender
* Business assistance always profitable for medium and long term.
* Possibility of participation in the capital of the company.
* Annual gift from beneficiaries.
* Can be the next beneficiary of this solidarity process in case of serious economic difficulties.

## How we built it

### FFDC APIs :
* For creating and consulting Letter of Credit within FTI : **“Import a Letter of Credit”** API
* For creating and updating Deal & Facilities within LoanIQ : **"Corporate Lending Deals"** and **"Corporate Lending Facilities"** APIs.

* NB: Unfortunately there is no API available for creating the loan itself

### Mobile App: Development with Flutter.

### Local SQL DB: Creating APIs with PHP and MyQSL.

## Challenges we ran into
### On the operational side:
* For the banks to support the small and remote professionals facing crisis even with solidarity process but in the meantime to be able to securitize the purchase process for both customer and supplier.

* To respect the chronology and dependencies required for a complex trade finance operation as the LC then for the set-up of a syndicated loan.
* To manage the ecologic transition as an added value both for the customer and the bank (cf gains).
* To manage the collect of the amount via solidarity funding.

### On the technical side:
* To use the FFDC platform via a list of FFDC APIs applied to 2 financial applications as FTI for trade finance and LoanIQ for Lending management.
* The access to FFDC with the securitized process for LoanIQ Deal and Facilities APIs (token, client secret,...).
* The currently availabe FFDC APIs don't allow to create the loan itself.

## Accomplishments that we're proud of
* An **efficient mobile app allowing complex transaction for any customer not used to this kind of financial mechanisms**.
* To be capable to highlight some gains for all the stakeholders of the service managed via the mobile app.
* To include the **ecologic transition criteria for reducing the amount of the purchase** at a time when the **International Climate Plan** has just been relaunched (5th anniversary in December 2020) and promoted by various forms of subsidies.

## What we learned
* Finding ideas to help small and medium professionals facing any form of crisis and allowing to relaunch their activities and keeping led jobs in non-urban areas.

## What's next for Responsible Trade Services for an agriculture cooperative

### Immediate next – Global survey to qualify the potential of this market
* Workload estimates to identify all functionalities to enhance in order to go into production.
* To benefit from enhancements of the list of APIs on Lending side, for instance for creating a loan.

General information