OCBC develops paper-lite trade finance platform to combat forgers | Asian Banking & Finance
,Singapore
3 views

OCBC develops paper-lite trade finance platform to combat forgers

The move is part of its goal to grow its trade finance business which saw revenue growth of 20%.

Bloomberg reports that OCBC is doubling down its efforts to digitise the heavily paper-based trade finance sector in an attempt to reduce the risk of fraud and streamline the drawn-out process, according to Ng Chuey Peng, managing director and head of global commodities finance at OCBC.

Paper features heavily in the global merchandise flow as documents are used to establish existence, ownership and payment of goods. This renders the process particularly vulnerable to fraudsters with increasingly sophisticated attacks as seen when Standard Chartered and Citi lost millions in 2014 after forged warehouse receipts for metal in a Chinese port were used to raise funding.

Also read: Here are Asia's top trade finance banks

In response to these threats, Ng told Bloomberg that OCBC is working on a project that “leverage technology in order to reduce the use of paper in commodities trade finance” as part of its overall efforts to grow its trade finance business which saw revenue grow 20% since its inception in 2014. The bank will also formalise a Hong Kong team and a US-based staff in 2019.

“Blockchain, Komgo, Forcefield, Vakt, one of these will have to work to change how trade is being done,” Ng told Bloomberg. “It’s a matter of time. When, I can’t tell, but I think it has to go paperless.”

Hong Kong, for instance, has launched a blockchain trade finance platform, eTradeConnect, with the aim of digitising trade documents and enabling real-time sharing amongst all participants, effectively making transactions more transparent and reducing the risk of fraud and duplicate financing.

Here’s more from Bloomberg

Get Asian Banking & Finance in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The number of HNWIs is expected to reach 3.9 million in 2021 or 60.6% of the population.
Banks have to remain consistent and continuous in testing best practices.
Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.
About 750 new accounts have been opened in four APAC markets through the new portal.
UnionDigital will be a wholly-owned subsidiary of the Philippine lender.
SmartStream’s Peter Hainz and Amazon Web Services’ Anna Green shared their insights on the advantages of on-demand and highly scalable cloud environments for banks and other financial institutions, as well as the factors hindering its adoption in the region.
This August, the Asian Banking & Finance and SAP will provide insights on the evolving landscape for ESG in financial services.
Thirteen lenders noted that demand was moderately weaker than the preceding 3-month period.
Investors will likely seek signs that private lenders will be able to step up lending once COVID subsides.