Trade finance has been an essential part of cross-border payments and international trade. However, the traditional way has been plagued with operational inefficiencies, manual workflows, and security risks.
With the advent of digital transformation, financial institutions now have access to artificial intelligence (AI) and machine learning-powered tools that can streamline financial institutions’ trade flow, reduce operational errors, and optimise credit risk management.
When these digital trade tools are used in the right way, they can enable FIs to have a holistic, real-time monitoring approach that allows flawless and fully transparent interdepartmental activities. These future-proof tools also pave the way for smart business processes and decisions without any possible human errors.
To better understand the role of technology in trade finance, in this blog post, we’ll take a closer look at the Globit RISQ FI solution and explain how it can help FIs achieve greater efficiency, transparency, and control over their trade finance operations.
Before delving into leveraging FI trade flow with Globit RISQ FI, let’s take a closer look at how the solution can assist financial institutions in staying ahead of the curve.
Globit RISQ FI is an end-to-end institutional banking solution that addresses all the needs and challenges of financial institution divisions in banks and financial services.
These niche departments primarily face the challenge of allocating country and counterparty limits, managing credit risk exposure, and collaborating closely with other teams, such as trade finance, treasury, and credit teams.
Additionally, manual processes, such as using Excel sheets, pose the risk of errors and mistakes in monitoring limits, resulting in the approval of trade transactions that exceed available limits.
Globit RISQ FI enables FIs to keep top-notch correspondent banking capabilities at their fingertips to obtain a real-time and holistic view of FI operations, streamline facility processes, and achieve a digitised decision-making process.
This solution can assist banks in overcoming their challenges and achieving impressive outcomes, including:
As correspondent banking evolves with emerging technologies, Globit RISQ FI is a valuable resource bringing a brand new vision to the way FIs operate their banking relationships and trade operations.
Globit RISQ FI can help financial institutions to manage and optimise their trading operations. The solution provides real-time RAROC calculations and enables FIs to reach real-time market data, manage limit allocations, and get automated workflows to pre-trade and trade processes.
The pre-trade process in FI involves analysing market conditions and assessing limit allocations of potential trades. Globit RISQ FI automates the limit reservation and confirmation processes to avoid limit breaches, identify opportunities, and mitigate risks.
Once a trade is executed, financial institutions must manage the trade lifecycle and update limit reservations in financial systems. Globit RISQ FI automatically updates these limit allocations in real time via online APIs, resulting in improved control and fewer management escalations.
It is clear that Globit RISQ FI allows financial institutions to have real-time monitoring capabilities, improves their control over trading operations, prevents limit breaches, and unlocks internal collaboration.
Therefore, without Globit RISQ FI, the trade flow might suffer from the following issues:
With our 23+ years of experience in building, implementing, and supporting treasury IT solutions, we are here to help you transform your FI operations. Our expert team is more than ready to walk you through our customer-centric, agile, and innovative FI, compliance, and Kondor solutions. Let’s meet to discuss how we can revolutionise your FI business!