WORLDS BEST TRADE AND SUPPLY CHAIN FINANCE PROVIDERS 2015

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Trade Finance Providers  The Power Of Global Connections  by Gordon Platt   Best Trade Finance Providers of 2015   Winners Profile	Supply Chain Finance Providers  New Entrants Fil A Gap by Anita Hawser  Best Supply Chain Finance Providers of 2015   Winners Profile

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THE POWER OF GLOBAL CONNECTIONS

Presenting the World’s Best Trade Finance Awards for 2015.

Trade banks’ global branch networks comprise a web of international connections that, in many cases, matches corporate trade flows. The ability to handle both sides of a cross-border trade transaction gives a big edge in efficiency to those banks with international and regional networks connected to platforms that can reliably and affordably process trade deals.

As corporations expand into new and unfamiliar markets around the world, they rely on their trade bankers’ knowledge of local markets and the unique requirements these markets present. Banks with broad international networks have capitalized on their global reach to make strong gains in market penetration in the trade finance business, according to Greenwich Associates. Companies, it says, are looking for banks with international networks that match the countries they trade with.

Banks able to handle transactions from end to end have greater efficiency and less risk, says Andrew Grant, consultant at Greenwich Associates. “Many of the banks are weighing the thin margins for trade finance against the increasing capital requirements from Basel III,” Grant says. “We are seeing some banks actively pulling back in certain segments, while others aggressively step in to fill the void.”

The International Chamber of Commerce says some form of trade finance is used to support most trade flows. “Trade growth, especially in emerging markets, cannot be achieved or sustained without the necessary levels of trade finance,” says Kah Chye Tan, chair of the ICC Banking Commission. Last year’s refinements of the Basel III framework will help to keep trade finance affordable to end users by making bank capital requirements more manageable, he says.

The amendments adopted by the Basel Committee on Banking Supervision on the treatment of off-balance-sheet items recognize the intrinsically safe nature of trade finance instruments, including the self-liquidating nature of transactions that support the exchange of goods and services, the ICC says.

There remains a significant global trade finance shortfall, estimated to be as high as $2 trillion, the ICC says. Thus, there is potential for additional trade-based economic growth, provided the financing support is available, it says.

China became the world’s biggest merchandise trader in 2013, with a total of $4.2 trillion of goods imported and exported. The US was second, with $3.9 trillion, followed by Germany and Japan, according to the WTO.

The US Department of Commerce expects world trade volume to increase 5.3% in 2015, up from 3% annual growth in the past two years. HSBC says growth in world trade could accelerate to 8% in 2016, with transport equipment and metals leading the way. Growth in India’s exports is expected to be strong, and China and Vietnam will boost exports to the US significantly, HSBC says.

European corporations are active in more regions than their peers in Asia or North America and need broad network capabilities to meet their needs, Greenwich Associates says. “Companies’ needs in specific countries and regions have expanded to the point at which many of them have begun to hire specialist banks with particular expertise and coverage within target international markets,” says Greenwich Associates consultant Tobias Miarka.

Global Finance editors, with input from industry analysts, corporate executives and technology experts, has selected the best trade finance banks in 91 countries or regions.We polled our corporate readership to increase the accuracy and reliability of the results.

Criteria for choosing the winners included trade-related transaction volume, scope of global coverage, customer service, competitive pricing, risk management and innovative products, services and technology. The winners are those banks that best serve the specialized needs of corporations as they engage in cross-border trade.

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Trade Finance Providers  The Power Of Global Connections  by Gordon Platt   Best Trade Finance Providers of 2015   Winners Profile	Supply Chain Finance Providers  New Entrants Fil A Gap by Anita Hawser  Best Supply Chain Finance Providers of 2015   Winners Profile

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BEST TRADE FINANCE PROVIDERS 2015
GLOBAL WINNERS
Best Trade Finance Bank	HSBC
Best Trade Finance Program	IFC’s Global Trade Finance Program
Best Trade Finance Multilateral Institution or Export Credit Agency	Export Development Canada
REGIONAL WINNERS
Americas	Citi
Western Europe	Deutsche Bank
Central and Eastern Europe	UniCredit
Middle East	Arab Bank
Nordic	Nordea
Asia-Pacific	HSBC
Africa	Ecobank
COUNTRY WINNERS
Algeria	Arab Banking Corporation Algeria
Angola	Standard Bank Angola
Argentina	Citi
Armenia	Ameriabank
Australia	ANZ Group
Austria	UniCredit Bank Austria
Azerbaijan	International Bank of Azerbaijan
Bahrain	Arab Banking Corp
Bangladesh	HSBC
Belgium	KBC
Brazil	Itaú BBA
Bulgaria	UniCredit Bulbank
Cambodia	ANZ Royal Bank
Canada	Royal Bank of Canada
Chile	Banco Santander Chile
China	Bank of China
Colombia	Banco de Bogotá
Croatia	Zagrebačka banka
Cyprus	Bank of Cyprus
Czech Republic	UniCredit Bank Czech Republic
Denmark	Danske Bank
Egypt	Commercial International Bank
Estonia	Swedbank
Finland	Nordea
France	Société Générale
Georgia	TBC Bank
Germany	Deutsche Bank
Ghana	Ghana Commercial Bank
Greece	National Bank of Greece
Hong Kong	HSBC
Hungary	OTP Bank
India	State Bank of India
Indonesia	Bank Central Asia
Israel	Bank Leumi
Italy	Intesa Sanpaolo
Japan	Bank of Tokyo-Mitsubishi UFJ
Jordan	Arab Bank
Kazakhstan	HSBC
Kenya	Barclays Bank of Kenya
Kuwait	National Bank of Kuwait
Latvia	Swedbank
Lebanon	BankMed
Lithuania	Swedbank
Luxembourg	Deutsche Bank
Malaysia	Maybank
Malta	Bank of Valletta
Mauritius	Mauritius Commercial Bank
Mexico	Banco Santander Mexico
Mongolia	Trade and Development Bank of Mongolia
Morocco	Arab Bank
Mozambique	Banco Único
Netherlands	ING
New Zealand	ANZ New Zealand
Nigeria	First Bank of Nigeria
Norway	Nordea
Oman	BankMuscat
Pakistan	Habib Bank
Palestine	Bank of Palestine
Philippines	Bank of the Philippine Islands
Poland	Bank Pekao
Portugal	Banco Santander Totta
Qatar	Qatar National Bank
Romania	ING Romania
Russia	Sberbank
Saudi Arabia	SABB
Serbia	Eurobank EFG
Singapore	DBS Bank
Slovakia	ČSOB Slovakia
South Africa	Standard Bank
South Korea	Korea Exchange Bank
Spain	Santander
Sweden	Nordea
Switzerland	Credit Suisse
Taiwan	CTBC Bank
Thailand	Bangkok Bank
Turkey	Garanti Bank
Ukraine	UniCredit Bank Ukraine
UAE	Abu Dhabi Commercial Bank
UK	HSBC
US	Wells Fargo
Uzbekistan	Asaka Bank
Venezuela	Banco Mercantil
Vietnam	Asia Commercial Bank
Yemen	Arab Bank

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Trade Finance Providers  The Power Of Global Connections  by Gordon Platt   Best Trade Finance Providers of 2015   Winners Profile	Supply Chain Finance Providers  New Entrants Fil A Gap by Anita Hawser  Best Supply Chain Finance Providers of 2015   Winners Profile

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SELECT: GLOBAL WINNERS | REGIONAL WINNERS  

The Hongkong and Shanghai Banking Corporation was established in 1865 to support trade between China and Europe. Today, UK-based HSBC is the largest foreign bank in China, and it operates at both ends of the top 15 trade corridors in the world.

HSBC was the first international bank to support renminbi trade transactions in six continents. It is able to execute trade deals in renminbi in the more than 50 countries in which it offers trade finance. HSBC expects one-third of China’s trade to be settled in renminbi by the end of this year.

In Britain, HSBC was the first bank to formalize a trade initiative with the British government to advise businesses on export-related matters. HSBC is a principal partner of the government’s “Open to Export” service, which offers support and advice to small and medium-size enterprises.

In Canada, HSBC has the highest import and export market share by volume of documentary credits, according to the Canadian Bankers Association. The bank uses its global network to issue overseas guarantees without having to negotiate prices with other banks.

HSBC merged its trade, supply-chain and receivables financing units four years ago. The bank’s online banking solution, HSBCnet, includes a trade module for initiating transactions, amending documents and accessing current information about trades.

The International Finance Corporation works in partnership with private-sector banks to deliver trade finance in 94 frontier and emerging markets through its Global Trade Finance Program (GTFP). For the past decade, the program has guaranteed the trade-related payment obligations of approved issuing banks to support private-sector trade deals in some of the world’s poorest countries. In the 12 months through September 2014, the program issued 3,100 guarantees, and its transaction volume exceeded $7 billion for the first time.

Tighter credit and rising compliance costs for confirming banks pose serious challenges to the availability of emerging-markets trade finance, the IFC says. In frontier and fragile markets, the IFC program focuses on building trade capacity at the larger banks. In bigger emerging markets, the GTFP works with second- and third-tier banks to strengthen their correspondent relationships with global trade banks.

The IFC’s network of 559 banks comprises 293 GTFP issuing banks and 266 confirming banks. Since the program began, nearly 35,000 transactions have been financed without a single claim. In 2014, network banks were added in the West African countries of Chad, Côte d’Ivoire, Senegal and Togo. Issuing banks were added in Iraq, Myanmar (Burma), and Thailand.

Canada’s economy relies on trade, with one-third of the country’s jobs related to exports. Export Development Canada, a self-sufficient Crown corporation, supports international trade deals through insurance, advice and financial services. One of Canada’s fastest-growing trade sectors is clean technology. In 2014, EDC issued its first green bond, a $300 million global offering to support financing for environmentally friendly businesses. EDC collaborates with Sustainable Development Technology Canada to further develop the country’s international capacity in the clean technology sector. In October 2014, EDC sponsored the International Finance Corporation’s second annual Climate Business Forum in Hong Kong.

EDC is a partner with Canadian Manufacturers and Exporters, Canada’s largest industry association, on a website that connects Canadian corporations to international buyers seeking matching products and services. To help small Canadian companies to successfully enter new markets overseas, the EDC publishes a new quarterly report with country risk profiles and market intelligence.

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SELECT: GLOBAL WINNERS | REGIONAL WINNERS

REGIONAL WINNERS

Citi’s trade finance network comprises 86 countries, making it one of the truly global trade banks. Its Trade MAPS program, established in December 2013, issues asset-backed securities of trade finance assets, allowing other trade banks to increase their portfolios in a capital- and balance-sheet-efficient manner. Citi’s scale enables it to have one of the largest investment budgets in the trade finance business.

In North America, Citi originates and implements major deals, particularly large export and agency finance transactions. The bank has partnerships with 65 export credit agencies, and correspondent relationships with more than 5,000 financial institutions.

In Latin America, where it offers trade services in 23 countries, Citi offers supplier finance programs and a full range of trade products. The bank has significant market shares in Brazil, Argentina, Peru, Colombia and Mexico, as well as in the Caribbean and Central America. Plus, the Asia-Pacific is one of Citi’s more important regions for trade product offerings.

Deutsche Bank has a trade network with 79 locations in 40 countries. The bank is a market leader in structured finance solutions and risk management capabilities. In its home market of Germany, Deutsche Bank has a trade finance market share of more than 25%. At the end of September 2014, it had documentary credits, collections and guarantees worth more than $90 billion on its books.

Deutsche Bank has invested in a robust and flexible trade finance platform. In addition to classic trade solutions, the bank offers a wide range of supply chain financing products. It also provides trade finance solutions to other banks, enabling them to offer import refinancing and discounting solutions to their own corporate customers.

In December 2014, Deutsche Bank completed China’s largest-ever structured commodity trade finance facility in collaboration with Switzerland-based international trading firm Duferco for Tangshan Iron and Steel, or Tangsteel. Deutsche Bank was coordinating lead arranger and bookrunner for the $1.5 billion, two-year syndicated facility, with participation by 22 banks globally. Deutsche Bank’s Hong Kong branch acted as facility agent and account bank for the prepayment export financing, which was oversubscribed.

Nordea is the largest financial services group in the Nordic region in terms of market capitalization and assets. It also has the largest distribution network, with some 800 branches. The bank has a 37% market share for letters of credit and documentary collections in the Nordic countries—Denmark, Finland, Norway and Sweden.

The bank handles more than 6,000 trade transactions a month with a trade finance staff of 250 people. It offers both traditional trade finance products and supply chain finance. Nordea has invested significantly in trade-processing systems, which are integrated into the internal workflow systems of its corporate clients to improve mutual productivity.

Nordea employs a global operating model to deliver a consistently high level of service across its trade finance network. In addition to the Nordic countries, it has trade operations in the Baltic countries and Central and Eastern Europe, as well as trade offices in New York, Shanghai and Singapore.

Nordea’s return on equity of 12.8% and core Tier 1 capital ratio of 15.6%, as of September 30, 2014, are among the best in Europe. The bank’s high credit rating has helped to make it the top choice for guarantee facilities in the Nordic region.

UniCredit is the largest international banking group in the CEE region, with a network of 3,600 branches. The bank combines a strong local presence with access to global markets. Based in Italy, UniCredit has operations in 50 markets worldwide. The CEE represents a significant growth area for the bank.

UniCredit focuses on electronic banking solutions to meet the specific trade finance needs of large corporations as well as small and medium enterprises. Its trade finance portal enables corporations to handle guarantees and letters of credit with all of their global banking partners through a single platform.

UniCredit Bank Austria is the single entry point for UniCredit’s correspondent banks around the world using the existing SWIFT message structure. The bank is a leader in the adoption of the bank payment obligation, a supply chain settlement solution of SWIFT and the International Chamber of Commerce that seeks to become a global standard for trade.

In addition to its processing efficiency, which has helped to make it the leading trade finance bank in the CEE, UniCredit is adept at advising, structuring and financing transactions. The bank also has a strong position in the discounting and purchase of receivables in the region.

HSBC is the market leader in renminbi services. Its position as the largest foreign bank in China gives HSBC unique insight into the dynamics of this market. HSBC says the renminbi could become fully convertible as early as 2017. Meanwhile, HSBC is able to settle renminbi trade transactions onshore via Shanghai, or offshore via Hong Kong.

HSBC hosted 30 large Indian corporations at its Global Connections conference in the UK in September 2014. This was part of the bank’s UK-India trade corridor, an initiative introduced earlier last year.

In Asia, HSBC’s supply chain finance service is delivered by a specialist team in the bank’s Hong Kong office, which prepares documentary credits for issuance by its local offices in Vietnam, South Korea, China and elsewhere. HSBC handles transactions across a broad range of industries and deal types.

In its latest trade forecast, HSBC says global merchandise trade is projected to more than triple by 2030, as companies capitalize on the increasing productivity and growing consumer wealth in emerging markets. China is expected to increase its overseas shipments five-fold as it strengthens its commercial ties to emerging Asia, the Middle East and North Africa.

With its extensive network in the Middle East and North Africa and teams of experts around the globe, Arab Bank provides added value in meeting its customers’ trade finance needs. Altogether, the Jordan-based bank is present in 30 countries and has a network of 600 branches, including such niche markets as Yemen and Palestine.

Arab Bank’s online trade finance and cash management corporate banking solutions enable clients to conduct their international trade transactions efficiently. The bank also has the local expertise that derives from its historical presence of 85 years in the MENA region and that offers an added level of security.

The bank maintains close relationships with its customers, offering key strategic products and services, as well as customized solutions. Egypt is one of Arab Bank’s core markets, where it has been operating since 1947 and has an expanding network of 30 branches. In its home market of Jordan, Arab Bank’s 76 branches blanket the country. In Lebanon, where it has been present since 1944, the bank has 11 branches, and in Palestine it has 26 branches.

Arab Bank prices its services competitively, taking into account the country risk of each country where it operates, as well as its clients’ overall transaction business, including cash management.

Ecobank is the leading pan-African banking group, with a presence in 36 countries on the continent. Last May, Ecobank and the African Development Bank signed a $200 million trade finance accord. The agreement includes $100 million for a risk-sharing facility to increase Ecobank’s capacity to confirm trade instruments issued by banks in Africa. The other $100 million is a loan to Ecobank to provide trade finance to corporations and small and medium enterprises in Africa.

Ecobank offers unique intra-African trade solutions with efficient transaction processing, settlement, financing and risk mitigation. It also provides credit enhancement from export credit agencies and multilaterals, such as the International Finance Corporation. And

EBI, Ecobank’s wholesale bank in Paris, confirms letters of credit to beneficiaries, enabling an end-to-end solution for the group. EBI has correspondent banking relationships with financial institutions worldwide. It offers structured trade finance and supply chain finance. EBI has representative offices in Dubai, London and Beijing.

Qatar National Bank became Ecobank’s largest shareholder in September 2014, after increasing its stake to 23.5%. Previously, the largest shareholder in Ecobank was South Africa’s Public Investment Corporation, with a 20% holding.

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Trade Finance Providers  The Power Of Global Connections  by Gordon Platt   Best Trade Finance Providers of 2015   Winners Profile	Supply Chain Finance Providers  New Entrants Fil A Gap by Anita Hawser  Best Supply Chain Finance Providers of 2015   Winners Profile

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NEW ENTRANTS FILL A GAP

Presenting the World’s Best Supply Chain Finance Providers 2015.

The past five years have seen a number of new nonbank entrants in the supply chain finance space, which until fairly recently was dominated by a handful of large global trade banks. These new entrants are not only reinvigorating supply chain finance in a way that few banks could, perhaps, given their restricted balance sheets and the impact regulation is having on their ability to fully extend financing to where it is most needed—emerging markets and small to medium-size enterprises.

Many years ago a former Hewlett-Packard financial executive spoke about the need for exchanges where companies could sell their accounts receivable or invoices to potential investors, so the companies could enhance their working capital. That reality is here, and has been for a number of years now, but in addition to The Receivables Exchange in the United States, the United Kingdom now has Platform Black, which leverages Cloud-based technologies to match suppliers with a wide range of nonbank investors. Leveraging a wider pool of funders and offering finance covering 100% of the invoice, platforms like these offer suppliers a potentially easier and quicker way of obtaining financing than traditional bank or buyer-led supply chain finance programs.

Time will only tell how many more of these platforms will emerge, and whether the market can sustain them all, but the financing need is apparently great, with the Asian Development Bank reporting a global trade finance gap of $1.9 trillion in 2013 and a 30% rejection rate among banks for trade finance applications. The time for innovation in supply chain finance is now, and winners in this year’s World’s Best Supply Chain Finance Providers reflect some of the newer, more innovative providers, as well as the more well-established players who realize they cannot afford to remain complacent.

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Trade Finance Providers  The Power Of Global Connections  by Gordon Platt   Best Trade Finance Providers of 2015   Winners Profile	Supply Chain Finance Providers  New Entrants Fil A Gap by Anita Hawser  Best Supply Chain Finance Providers of 2015   Winners Profile

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BEST SUPPLY CHAIN FINANCE PROVIDERS 2015
GLOBAL WINNERS
Best Global Supply Chain Finance Provider – Bank	Standard Chartered
Best Global Supply Chain Finance Provider – Nonbank	PrimeRevenue
Best Supplier Support & Enrollment	Orbian
Best Payables Supplier Financing Solution	Platform Black
Best Pre-Shipment Financing Solution	Standard Chartered
Best Customer Implementation of Supply Chain Financing Solution	IFC & Levi Strauss Differentiated Pricing for Sustainability in Supply Chains
Best Web-Based Supply Chain Financing Solution	PrimeRevenue
Best Platform Connecting Buyers, Suppliers & Financial Institutions	GT Nexus
Best Integrated Trade, Supply Chain Finance and Cash Management Solutions	Bank of China
Best E-Procurement	Ariba
Best Inventory Management	GT Nexus
Best Trade Document Management	Citi
Best Analytics for Credit Scoring & Risk Assessment	Dun & Bradstreet
Best Invoice Discount Management	DBS Bank
Best Supply Chain Risk Consulting Services Provider	Marsh
Best Supply Chain Insurance Provider	FM Global
Best Supplier Financing	Bank of China
Best Inventory Financing	BNP Paribas Utexam
REGIONAL WINNERS
North America	Citi
Western Europe	RBS
Nordic Region	Danske Bank
Central and Eastern Europe	ING
Latin America	Citi
Asia-Pacific	Maybank
Middle East	Abu Dhabi Commercial Bank
Africa	Citi

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Trade Finance Providers  The Power Of Global Connections  by Gordon Platt   Best Trade Finance Providers of 2015   Winners Profile	Supply Chain Finance Providers  New Entrants Fil A Gap by Anita Hawser  Best Supply Chain Finance Providers of 2015   Winners Profile

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SELECT: GLOBAL WINNERS | REGIONAL WINNERS

The emerging markets bank continues to stand out from the rest of the pack thanks to the fresh approach it takes to supply chain finance. Most bank-led supply chain finance (SCF) programs are buyer-centric, and the large global trade banks typically serve the needs of large buyers rather than smaller suppliers in emerging markets, where the need for more affordable forms of financing is perhaps the greatest. This financing gap is likely to be exacerbated by Basel III, as smaller, less creditworthy customers in markets with low credit ratings become increasingly unattractive from a capital perspective to most banks. Standard Chartered is not immune from the impact of Basel III; however, its SCF model is focused on the end-to-end supply chain, including Tier 1 and 2 suppliers and distributors and dealers, and financing decisions are based on a more in-depth analysis of the longevity and strength of a supplier’s or distributor’s relationship with a buyer instead of on their balance sheet.

The ability to scale with buyers and suppliers needs is important in any SCF program, whether it is bank- or nonbank-led. PrimeRevenue stands out in this respect, with an extensive geographical footprint covering most of the major trading hubs in Asia, the United States, the United Kingdom, Europe and Africa, and its support for transactions in excess of 22 currencies. Suppliers can access more than 50 funders (banks, hedge funds, capital markets investors and captive financing arms of large corporates) on the PrimeRevenue OpenSCi platform, which has been leveraged by such leading global brand names as Volvo, Whirlpool and Sainsbury’s to extend payables and to enable their suppliers to leverage their credit standing to obtain more affordable financing.

Orbian continues to stand out for the positive feedback it receives from suppliers on the simplicity of its enrollment process and supplier agreement, and for the fact that funders can be easily added or removed without negatively impacting suppliers—who do not need to change bank accounts to receive funding. Orbian says it implemented 12 new buyer programs in 2014 within 30 days of initiation.

UK-based Platform Black, a relatively new entrant into the supply chain finance market, leverages the latest Cloud-based technologies to enable suppliers to more easily sell their invoices or accounts receivable to a multitude of funders. Although exchanges for selling receivables is not a new concept, such solutions make it easier for suppliers to upload invoices to access a wide range of funders, including nonbanks, which is increasingly important in light of the impact regulations like Basel III will have on banks’ ability to fund supply chain finance programs. Unlike some bank-led solutions, Platform Black offers funding to cover 100% of the invoice. The advantage for suppliers is that they can access financing more easily and quickly rather than having to meet strict criteria put in place by a buyer-led, bank-supported SCF program.

Although a number of banks say they offer pre-shipment financing, most SCF programs are still post-shipment with financing provided on the basis of buyer-approved invoices. In the case of pre-shipment financing, there are no approved payables, so extending financing at a much earlier stage in the supply chain requires a deeper understanding of the buyer/supplier relationship. Standard Chartered says its financing model is well placed to provide finance at both the pre-shipment and post-shipment, pre-acceptance stage, including distributor financing.

Supply chain financing is typically used to help less-creditworthy suppliers gain access to more-affordable forms of financing and to strengthen supply chain relationships. However, the International Finance Corporation, Levi Strauss and GT Nexus, a Cloud-based trade and supply chain management platform, have taken this concept a step further. Leveraging the IFC’s Global Trade Supplier Finance program, which provides short-term financing to suppliers and SMEs in emerging markets, Levi Strauss is able to reward suppliers that meet its sustainability (environmental, health and safety, and labor standards) metrics by extending earlier and more-affordable financing to them. The higher the sustainability score, the more favorable the rate of financing. Payment to suppliers is provided through the GT Nexus platform.

Accessing software or solutions in the Cloud is not a new concept; PrimeRevenue, however, was one of the first to do it in the supply chain finance space. Its OpenSCi Cloud platform features a range of apps for buyers and suppliers, including SCiSupplier for accessing a range of different funding suppliers, SCiCustomer for keeping track of funders and transactions, SCiMap for supplier data analysis and benchmarking, and SCiEnable for onboarding suppliers and agreement management.

The GT Nexus Cloud-based platform for trade and supply chain automation is one of the few to bridge the gap between the physical and financial supply chains. It is a bank-neutral network that automates all aspects of the supply chain, from the factory floor through to payment for goods shipped. It provides suppliers with a range of financing options, including Early Payment Program, and works with the IFC Global Trade Supplier Finance Program. GT Nexus has partnerships with more than 25 financial institutions and also works with trade-credit insurance providers like Coface, which can help companies access financing more easily.

As an increasing volume of trade is conducted on an open-account basis, banks have sought to make themselves more relevant to buyers and suppliers by integrating cash and trade solutions to better manage their payables and receivables. Bank of China developed an innovative solution integrating aspects of trade, the supply chain and cash for one of computer manufacturer Lenovo’s Chinese distributors, Insigma, and its distributors. Leveraging Insigma’s B2B platform, distributors can apply for supply chain financing from Bank of China. Various accounts set up by Bank of China enable Insigma to more readily track and manage sales revenue from distributors, which is used to repay money lent by the bank. The joined-up solution enables distributors to gain financing more easily, while Insigma receives funds more quickly and can thus expand its sales.

Ariba’s Cloud-based e-commerce platform connects buyers and suppliers in 190 countries around the world. Every day hundreds of thousands of purchase orders and invoices are exchanged on its network by companies of all sizes and buyers and sellers can access a range of solutions to help them better manage their spend and discover new suppliers to do business with. Ariba’s acquisition by enterprise software vendor SAP should see a more integrated approach to the corporate supply chain by more closely amalgamating e-procurement and e-invoicing with companies’ financing and accounting systems.

With a Cloud-based platform that more closely integrates the physical and the financial supply chains, GT Nexus recognizes the benefits of automating inventory management from the factory floor in order to ensure there are no delays in the shipping and delivery of goods. This has a follow-on effect: quicker receipt of payment for goods. GT Nexus’s factory floor automation solution enables companies to manage their inventory more efficiently and to oversee the shipment of goods. Last year the solution processed one million purchase orders and one million advanced shipment notices.

Automating trade documentation is key to ensuring there are no hiccups in the delivery and receipt of goods, which can delay payment, thereby affecting a company’s working capital. Citi provides a range of trade document management solutions, including a Web-based solution for streamlining the approval of freight invoices to help minimize disputes and more quickly resolve errors. Companies can outsource their trade documentation to Citi, which provides solutions for uploading trade document images.  

Dun & Bradstreet is the industry standard for supply chain market intelligence. E-procurement network Ariba leverages Dun & Bradstreet intelligence to give companies greater insights into their spend with suppliers. D&B enables companies to analyze a supplier’s financial performance, as well as environmental and political factors that may cause disruption in corporate supply chains.

Singapore-based DBS Bank offers invoice discounting across its core markets and provides innovative, large-scale invoice discounting solutions for key corporate customers across a range of sectors. Invoices are discounted on a nonrecourse basis without affecting the customer’s balance sheet. In the past 12 months, DBS Bank has rolled out a new invoice-discounting platform across seven locations.  

Anticipating a wide range of risks (political, financial and environmental) is essential for companies wishing to minimize the disruption in their day-to-day trade with suppliers around the world. Insurance broker and risk management provider Marsh helps companies identify potential sources of risk and implement and assess risk management strategies.

FM Global counts more than a third of Fortune 1000 companies among its clients. It says what sets it apart from its competitors is its “engineering-based approach” to underwriting and managing supply chain risk and its extended supply-chain risk insurance coverage, which encompasses suppliers and customers across the entire value chain.   

Bank of China leveraged the credit standing of Huawei Technologies, one of the world’s largest telecommunications manufacturers, to extend factoring finance to more than 80 of its upstream suppliers, providing approximately Rmb12 billion ($1.9 billion) in financing. Factoring is integrated with a cash management solution, which facilitates the management and flow of funds from sales made by nonlocal suppliers. The solution enables Huawei to ensure financial stability in its supplier base and increase sales.

BNP Paribas owns a subsidiary company, Dublin-based Utexam, which buys and sells inventory on behalf of the bank’s customers. Utexam helps customers maximize working capital from their inventory. Inventory can be used to help customers extend payment terms, or for companies that want to defer the purchase of inventory to a later date in the production cycle, or to deal with seasonal spikes in production.

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SELECT: GLOBAL WINNERS | REGIONAL WINNERS  

In North America, Citi has a long track record of leveraging risk guarantees issued by export credit agencies, like the Ex-Im Bank, to purchase the receivables of major US exporters. In North America it operates a number of supply chain finance programs for Fortune 500 companies. Citi’s suite of supply chain finance services includes distribution and commodity trade finance.

The UK’s Royal Bank of Scotland continues to invest in its supply chain finance offerings with new additions to its product suite, including electronic invoicing and dynamic discounting for buyer self-funded supply chain finance programs. It stands out from other banks in this space based on its support for third-party, bank-agnostic supply chain finance platforms. It describes itself as the SCF bank of reference for large UK and European companies looking to roll out cross-border programs.

With a presence in 14 countries in Western Europe, the Nordic and Baltic regions, Danske Bank  is well placed to support Nordic customers’ regional supply chain finance needs. The bank says it can also arrange programs in North and South America and Asia via a partner solution. Danske Bank is looking to develop a full suite of supply chain finance solutions, including invoice order matching and well-integrated inventory and supply chain financing.

Dutch bank ING says its supply chain finance volumes increased by 100% in 2014. In 2012 its trade and corporate receivables businesses and payables SCF solutions were integrated under Working Capital Solutions, which provides an all-encompassing suite of solutions, including payments, liquidity and trade, to address companies’ working capital needs. The bank maintains satellite SCF teams in Poland, Romania and Russia.

Citi SCF programs in Latin America span 19 countries and feature multiple buyers and suppliers. Its technology platform provides visibility into invoice flow, and users report having good access to liquidity. Local companies also benefit from the bank’s on-the-ground presence and knowledge of the region. In Brazil, Citi has instituted a number of local and cross-border SCF programs for buyers and their extensive network of suppliers.

Maybank is the fourth-largest bank in Southeast Asia. It has a well-established presence in Malaysia, Singapore, the Philippines, Indonesia and China. Although most of the large global trade banks focus on large creditworthy buyers, Maybank boasts strong relationships with small to medium-size companies in the region. Its SCF offering encompasses vendor, supplier and distributor financing.

Recognizing the importance of value-added solutions in the open-account trade space, Abu Dhabi Commercial Bank recently launched a new trade-document preparation service for local oil exporters looking to expand cross-border. ADCB says it handled the entire process from the point of invoice issuance through to receipt of payment for a large oil trader in the Middle East looking to ship into Tanzania. The solution involved working closely with the trader’s finance, logistics and business units and checking and confirming hundreds of letters of credit within a short time frame.

In Africa, Citi has supported growing trade flows between Asia and Africa by introducing Chinese-speaking specialists in the region and expanding its renminbi capabilities, including its offshore renminbi offering. Large global buyers can leverage Citi’s global network capabilities and consistent user interface to onboard suppliers in Africa as part of large, globally complex supply chain finance programs.