Anastasia McAlpine, head of product, Trade & Supply Chain Finance at Finastra, shares why innovation and collaboration are vital to trade finance.
Global Finance: How does Finastra stay ahead of the curve in trade finance innovation?
Anastasia McAlpine: Finastra prioritizes innovation to tackle challenges in the traditionally paper-heavy trade finance industry. We invest in optimizing processes and leveraging advanced technologies like AI to improve efficiency. For instance, Finastra’s Assist.AI tool, based on Microsoft Copilot technology, addresses the industry’s knowledge gaps by assisting newcomers in efficiently navigating our Trade Innovation platform and the trade finance landscape.
Finastra is focused on advancements in ESG [environmental, social, governance], providing scoring facilities that reward sustainable businesses. For example, integration with TradeSun’s CoriolisESG allows users to book and manage trade and supply chain finance (SCF) while gaining automated insights into ESG scoring. This enhances their understanding of trade sustainability and enables better-impact monitoring and management.
Finastra also supports banks adopting regulations like the UK’s MLETR [Model Law on Electronic Transferable Records], transitioning trade from paper-based to fully digital processes. Our partnerships with fintechs like Conpend, Cleareye.ai, and Enigio further enhance our customer offerings.
GF: Can banks expect improvements in operational productivity by using Trade Innovation?
McAlpine: Trade Innovation significantly enhances bank productivity by streamlining operations, reducing costs, and improving overall efficiency. Efficiencies have included tripling the number of trade finance transactions while reducing average processing time by 95%, achieving 40% growth in transaction volumes over 18 months, increasing straight-through processing rates from less than 10% to over 70%, and boosting automation by over 20% of transactions.
Trade Innovation has also extended its SCF functionality via API integration with third-party applications such as CredAble and Finverity, providing a comprehensive financial toolkit and seamless user experience. These solutions enhance the accessibility and efficiency of SCF with a digitized and automated offering that simplifies invoice and payment processing. This enables companies of all sizes to adopt SCF programs more quickly. The offering also includes automated counterparty onboarding, transaction processing, and risk management.
GF: What is Finastra’s unique value proposition in the trade finance landscape?
McAlpine: Finastra is a recognized market leader in trade finance, supporting over 200 banks globally with award-winning solutions. Its offerings cater to banks of all sizes, from mid-tier institutions to large multinationals, enabling seamless global processing and compliance.
Trade Innovation, through the trade ecosystem of partners enabled by open APIs, ensures easy implementation and management, empowering banks to adapt swiftly to market needs. By providing access to cutting-edge technologies like AI and digital open-source trade documentation tools, we’re helping banks drive operational efficiencies, reduce costs, and explore new revenue streams like SCF.
Our commitment to innovation, collaboration with fintech partners, and focus on sustainable growth makes Finastra a trusted partner in trade finance. We believe in “doing well by doing good,” reflecting our mission to reduce the trade finance gap and enable banks to support small and midsized businesses by lowering barriers to access and fostering inclusive growth.
This is further solidified by Finastra’s active participation in the World Trade Board, International Trade and Forfaiting Association, International Chamber of Commerce, Bankers Association for Finance and Trade, and other leading industry bodies. This highlights our mission to enhance global trade by integrating finance and technology, promoting sustainable growth and prosperity.
GF: Can you share examples of how Trade Innovation has helped banks improve their trade finance operations?
McAlpine: Success stories include a partnership with Capital Bank, which leveraged Finastra’s solutions to enhance its trade operations, as it felt its existing treasury and trade management systems were not well placed for growth. They selected Trade Innovation as an end-to-end working capital management solution because it offered greater system integration and automation. The bank was also impressed with Corporate Channels’ [an extension within Trade Innovation] intuitive user experience for employees and clients.
