success story

A Tier 1 global bank gets future-ready while reducing its trade transaction processing costs

Modernizing and streamlining the bank’s trade finance platform across Asia Pacific

Trade finance is one of the most complex business segments in banking. The reason is the number of parties and stakeholders involved in the transactions and the complications attached to its execution. Manual execution of trade finance on legacy, paperback, or labor-intensive platforms is error-prone and affects the margins. Virtusa can guide banks to modernize trade finance platforms to remain profitable and competitive while embracing a digital journey in the end-to-end Trade Finance value chain.

Our client is one of the top global banks in the transaction banking business. Virtusa partnered with the bank in Singapore to develop a modern global trade finance and open account platform. We engaged with the bank’s trade finance team to transform the existing platform to scale its trade finance operations, and maintain their cost efficiencies and service levels, thereby improving their service levels.

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The Challenge

The client had multiple platforms for the Trade Finance business. The disparate systems could not keep up with the growing business demands. The bank needed to consolidate and rationalize these platforms into a new future-ready platform to meet its current needs and future growth better.

The Challenges were:

  • Increased cost of trade operations
  • Increased technical debt
  • Delayed time to market
  • Increased business and technology risk
  • Non- compliance with regulations
  • No real-time reports and manual tracking
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The Solution

Virtusa partnered with the bank to completely modernize its trade finance platform

The new platform serves more than 44 countries critical to the bank’s wholesale business. Virtusa partnered with the global bank to design, develop and implement future-ready trade finance and open account trade platform across branches in the Asia Pacific region. Their future plan is to roll out the platform globally. The solution ensured adherence to SLAs and regulatory requirements by managing complex projects, performing regular checks, structured tracking of critical documents, and extending trade finance services, thereby increasing the scale of operations. The solution caters to country-specific needs like taxation and regulation.

We assisted the bank by:

  • Leveraging processes, controls and best practices enlisted by the CoEs at Virtusa.
  • Accelerated requirement gathering effort by reusing the Virtusa repository of trade finance use cases, process maps, and business capability models
  • Accelerated test case identification by reusing the Virtusa repository of trade finance test cases
  • Involvement in all phases of project/program life cycle, including production support activities for the platform 
  • Ensuring 24 X 7 support on production issues 
  • Providing the bank clients with access to 24/7, real-time trade capabilities that are scalable, reliable, and secure
  • Enabling multivendor, multilocation, multi-ethnic, and multicultural teams spread across India, Malaysia, and Singapore.
Trade transaction processing solutions
The Benefit

The bank has developed a modern future-ready platform with real time capabilities and 24/7 availability

Virtusa helped the client establish a scalable, reliable, secure, and future-ready platform. It ensured reduced technical debt, operational cost and enhanced time-to-market capabilities. Some of the other benefits realized by the client are: 

  • Significant reduction in business, technology and compliance risk
  • Better adherence to compliance requirements – local and global
  • Over 70% increase in processing capacity
  • Improved SLA adherence for over 99% of the issues.
  • 360-degree, real-time monitoring leading to quick business decisions
  • Improved STP leading to reducing cost and processing turnaround time
  • Ability to process information received through multiple channels, thereby enabling the client with multiple trade request initiations

The client now offers customized solutions to its diverse wholesale clients while adhering to local regulatory standards. It also ensures that the bank can offer value-added trade services leveraging global initiatives like Open Banking, Digital Trade Finance, IoT, and Blockchain for its clientele.

 

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