Interoperability for Trade & Supply Chain Finance

Digital transformation and blockchain democratization have significant impact on Trade and Supply Chain Finance activities.
FinTech breakthrough is changing the market and provides new innovative solutions banks need to embrace to meet corporates expectations, differentiate from competitors and earn new customers and market shares.

Context
Corporates always need to optimize more and more their working capital, cash flows and risk mitigation.

Banks are looking to provide answers to their customers’ pain points and to expand their Business through innovative Client Acquisition Channels.

FinTech such as Marco Polo, Komgo, Contour, We.Trade… bring new acquisition channels, leveraging on blockchain concepts, with flexible portals, easy to integrate with Corporates’ ERP.

Trade Finance and Supply Chain Finance markets continue facing challenges such as compliance issues, regulatory uncertainties, security concerns… To face these challenges, Financial Institutions require:

• Scalability to manage volume growth coming through these new channels
• Interoperability to manage multiple client acquisition channels
• Enhanced Risk Management capabilities

This joint Natixis/Tesselate project aims at demonstrating capabilities to cater for all above by streamlining Bank legacy back-office processes with these innovative Front-End Portals, and leveraging on the Finastra OpenAPI technology.

Interoperability for Trade & Supply Chain Finance
The target solution will:

• Be interfaced with Fusion Trade Innovation as back-office system for both Trade Finance and Supply Chain Finance.
• Act as a hub and bring interoperability with all front-end platforms on the market.
• Use open-APIs provided by Finastra through FusionFabric.Cloud on one hand, and by the external platforms’ APIs on the other hand.

As an extension of the solution, an interface with Finastra’s LoanIQ is also under implementation in order to provide to the banks a full integrated end-to-end solution for limits management and loans processing.

Project scope for HackToTheFuture
HackToTheFuture is the opportunity to create a POC of the solution on a limited scope, covering the 2nd proposed theme of the hackathon “Embrace technology-enabled change”.

The use case for the Hackathon has been designed with the support of French bank Natixis.

It has been decided to cover the product Receivables Discounting from Marco Polo, which is to be interfaced with FTI’s Seller Centric Finance product, from the Supply Chain Finance application. This POC covers the program creation, the import of new invoices and the creation of the funding.