4 - The future of global trade and supply chain finance - Technology and trade digitisation

4 - The future of global trade and supply chain finance - Technology and trade digitisation

Show Video

[Music] [Music] so now we're going to talk about technology and i encourage our listeners to keep asking questions using the hashtag cybosstradecast and we will endeavor to get them answered by our brilliant panel so chris everyone talks about the acceleration of digitalization in the trade finance space what's been happening and how is the pandemic accelerated processes and can you perhaps give any examples of this i don't think we have the time to give examples i think um again um supply chain has been on the forefront right of defining what digital is and for everyone in a supply chain literally right how do we interact what tools we need what does it mean to be digital for everyone and what do we need to do to enable right how does that interconnectivity work for everyone so at ibm what we focus on number one is to bringing on a collection of technologies ours our partners and everyone to enable this process to take place but the most important things that are coming out are number one security number two compliance so we get the confidence right in the digital supply chain but then some of the newer technologies like low code no code right an ability to onboard digitally what does that require right um also model driven designs to able to visualize the entire trade lifecycle and see what this looks like where you are in a given point to give a visualization to every participant what needs to be done finally i think the last piece is artificial intelligence allowing us to anticipate right not only the issues but anticipate what the client wants to do and give the client options at even at every single point of that cycle so for us and then taking a look at back how do we step back and what technology is applied to each one of those again ibm and non-ibm we're in hybrid space enabling our big clients and small clients as well absolutely and uh and and jeff question to you how do you go about choosing platforms and and there are many banks on on this webinar right now uh so be good for you to give a bit of a a bit of advice and and can you talk about any of the current projects that beaver are working on within the digital trading splash and finance space yeah so you know there there are a couple of of sort of philosophical boxes that we want to check right up front when we think about a platform um you know what we'd love to do i think in the banking community is we we love to stick with what we're good at and you know what we know that we bring to the table is we bring sort of the balance sheet the ability to finance uh we bring an investor pool to a large extent and then also we bring connectivity to corporate clients all over the world and i think you know a natural corporate connected connectivity that we bring so i think you know that's something that the banks will always do really well and i think you know everywhere in the world which is a sort of a home market for a group of banks they have a sort of a you know a core group of clients where they they have the influence the connectivity and sort of the need to be able to create this value for them so i think you know we think about that as the as the first thing then we think about a platform or how we can facilitate that and i think you know you use the word ecosystem and you're sort of opening six sort of themes and i think you know overused as it may be it is an ideal word to describe what it is that we are trying to achieve right we're trying to achieve connectivity to an ecosystem so the way we always approach sort of a platform or a solution is we we a we want it to be ubiquitous right we want it to be something that will work because everybody does it if everybody does it and not sort of force our clients to sort of bet on one horse if you will you know we would rather not say here's a platform that we own and operate please log into it and transact everything here and then go back into your own platform and do what you do you know that doesn't seem very ubiquitous for us and sort of and and creates naturally creates that sort of friction that mechanical friction that we that we keep talking about so you know we we really are looking at an adaptable malleable ecosystem where we can facilitate transactions for our clients doing the things that we do they need to be finance transactions loan transactions they need to be able to connect to our our sort of loan records which are you know regularly um scrutinized by our regulators and overseers so you know all of that needs to happen but it also needs to be sort of user friendly for the client so that low friction environment that efficient digital paperless sort of environment and one that can connect to the ecosystem so that's what we're really looking for and then you know as part of that clearly scalability you know what we'd like is as i said an adaptable and a malleable sort of environment where we don't have to sort of say we've got a platform in five years we're going to create a new platform or we're constantly going to have to build out a platform what we'd really like is something that's more of sort of some architecture that we can be fluid with right and we can sort of build and and even sort of tear down as we go where needed and you know mother talked about a few things in flight we're working with our great partners at ibm around sort of you know a couple of different parts of our supply chain one around being able to do things that have traditionally been very very paper intensive in a more digital way right so those of us in trade finance sort of you know some of these things need no introduction you know open account processing etc some of the transactional type business that we do and how can we sort of create something that's more digital and then sort of allows for a more frictionless transaction where we don't need to be so mechanical with how we achieve it you know mata talked a little bit about sort of our embedded solutions where we can sort of allow for a an environment in which our clients could perhaps transact in their own operating system right and then connect back through whether it's api or whether it's blockchain um to be able to sort of allow the bank to be able to record those transactions and then you know there's certainly the operational component of that as well where we've got sort of things like compliance checks etc that we're doing with ai and i think that's also a real part of you know our solution and how we think about the platform and the environment how we transact so all those things follow a common theme you know here at bank of america we sort of call it operational excellence and always on is sort of the buzzword that we have um and and the way we think about that is you know all of this stuff needs to be it needs to be scalable it needs to be malleable it needs to facilitate a wide body of transactions needs to be able to sort of check all the right boxes with the bank regulators etc the things that we need to do and then we we are very open to achieving this with partners right so this is where we look to the fintech community we look to our great software vendors like ibm and the consulting services et cetera to be able to help us achieve this stuff so you know we're not looking for one thing depeche we're thinking we're thinking about it very holistically i think as we think about our platforms yeah so look the best one thing i wanted to add you know as you think about sort of technology and the challenges for our business right i think what you see is really the two businesses which you know which is supply chain which we've talked quite a bit and the traditional trade the they're both at very different evolution of cycles of digital uh sort of acceleration or transformation for the traditional trade the issue always has been um there is a part of the business that's just paper intensive and um you know so when you talk about digital are you able to digitize the entire cycle or are you digitizing only a component of it but then what the kovit has shown is if you just digitize a component and the rest of it is all paper intensive your problems never really go away so the question for that part of the sort of the core business really is you know how are you able to partner with technologies that can bridge the gap between uh taking the paper digitizing the paper making it much more data driven digital data driven and then completely digitizing the pieces that you can and then on the supply chain finance side which is already a very digital business to begin with it's really about tapping into this various sort of corporate uh origination pools which is basically connecting to the core so very different ways of thinking about them digitally and technology and where you want to partner to uh kind of move the needle forward from that perspective thanks very much good to distinguish between those those two pieces um their mother and actually that was the the kind of question i had in mind for you chris uh a quick question from the uh from the audience given the accelerated drive to digitally transform how do you see cloud computing enabling this evolution for corporate banking within within gtp teams so uh as i look at it uh my b of a partners uh have been very articulate and uh described well the entire operating model right and the components of our operating model what is the client service model look like and the multi-channel access what is the digital omni-channel interface if you will right what is the data based processing again digital database processing intelligent automation and what are the set of global platforms that we need to take on so to answer that question right um jeff and mata have really gone down the entire set of platforms right and said well how does how can that be enabled what we do at ibm we've captured all of that in our set of not only compliance and um security environments right but how do we standardize all five pieces of that platform right and how do we deliver that to the community such as bfa and its clients and beyond to enable bfa and its clients to grow so our underlying platform fs cloud has been designed to accomplish all five components of of the debate that we've been having here everything from operating platform from a client level all the way through multiple flexible right but standardized platforms right that could be securely threaded together thank you thank you chris i think i think that makes a lot of a lot of sense and and also hello to all the the fintechs joining us here at at the cyboss at this cyboss tradecast i think it's uh it's very important to get that perspective both from yourself chris and also jeff in terms of who you're looking at from a fintech and trade tech partnership perspective something else that's been mentioned in in the comments on this trade cast is all around cyber threats and and i guess chris i'll ask this question to you you know we've seen an increased focus on cyber threats and a focus on public versus private clouds for financial uh data what are the key differentiators in this place well um to us at ibm um this has been at heart for for multiple years right from the time we rolled out our z machines right which enabled specific cryptography so what jeff and mother had mentioned right is an ability to secure data in motion right at any given time and the concept of bring your own key and keep your own key right so as the data moves around we have been able to design the cryptography to really protect this not only when it emanates from our machines on-prem right our machines which run perhaps even the private clouds then to public clouds which we are actually focused on industry cloud so we're focused on having a very specific financial services cloud which has over 286 different regulations which give that confidence of really stamming the cyber attacks right and i know many of us get attacked and we don't want to talk about um or we don't want to put down any of our competitors right but from our perspective at heart for us is to make sure that any transaction is compliant and safe right and that concept of cryptography is something that we bring to us in every step of a journey not only from what we do but also the great isv community that joined us here on this on the webcast right we help them to bring that same confidence to all their clients so it's this cryptography that enables us not only to transact on our machinery but also to extend it via product that we have called satellite to our great partners out there to anyone that participates in this entire supply chain of data thanks chris you know one of the things this becomes much more critical and important as we move forward because traditional trade as an example right there's so many pieces of paper today that then become uh digital um and stored digitally and ecosystem players accessing this digital environment so you know whether that is sitting in some private cloud hybrid cloud um you know partnering with a partner that has uh the right set of sort of cyber you know controls and stuff becomes even more important uh because you're moving to this much more sort of digitally native uh environment if you will right so that that becomes the heart of sort of what you know what uh you know banks like us you have to evaluate as as you sort of begin on this journey which is very different than just for purely apis which is sort of data in motion but this is much more comprehensive because the ecosystem nature of the digital data in itself yeah just to follow up really quick to pass on this um about three years ago we at ibm set out on a journey how would we construct this hybrid cloud environment and one of our foundational clients is bfa in the u.s and globally we have other foundational clients our anchor tenants such as bnp paribas bank of tokyo mitsubishi we got together and said what are the global set of rules really that govern this right uh and we put together among our foundational anchor clients this set of global rules that will help us to secure and bring together an environment that we could all enjoy and ensure that everyone from the banks to fintechs to the suppliers to manufacturers everyone grows right and it's able to transact in a way that benefits them yeah chris actually your your colleague palm sanger uh you know talks about these ideas of these open open rules standards etc interoperability uh i think that the standards piece particularly from the work around the icc dsi is really important to uh to take into consideration that jeff where where are we at at the moment in terms of what's your opinion on on on international standards and standardization of of of data in and around trade and supply chain finance you know it's a it's a great question because i think you know it's the boring part but it's the necessary part and i think you know where we've um really seen some good collaboration in the last 18 to 24 months has been around the standards and i think you know the icc baft has done some really good work around this um you know we've seen the wto weigh in i think you know we're always sort of juxtaposing two things one is um how we can sort of facilitate some standardization that will allow for greater adoption and allow for greater sort of ease of transaction while at the same time and and very fairly we're also working with the global regulatory community to make sure that there are the proper controls around all of these things and you know we're always sort of doing those two things concurrently and you know hopefully in a you know in a more perfect world they all fit together very sort of uniquely but you know and i think that comes back to where we are able to create some some global standards around things like digitization some legal sort of issues uh jurisdictional issues you know right alongside of that will be the data that sort of comes with being able to track the things that we're doing and then sort of put those back to the overseers you know the the bodies that oversee the the banks the regulators etc so that we can sort of create standards that will facilitate the transaction and then the transactions themselves will be sort of uniquely able to be vetted um and and controlled in a way that will sort of allow for you know that global sort of transparency in some way that that will sort of be the great facilitator so i do think you know depeche i think the last time we spoke at sibos this was something that we had talked about it continues to be something that we talk about i think we've gone down the road a bit on the journey we like the engagement that we've seen from the icc and the wto and baft and others because i think it really helps to coagulate all of the sort of parties and the voices together and i think that's been uniquely beneficial to us so i think we expect to see that continue as well but still very important great thank you very much so now on to our our last section of the uh of the trade cast what should the world expect from a bank perhaps a bank dedicated to meeting the challenge of change a bank that honors the business environment and the natural environment with equal passion providing people and businesses the tools and insights they need to succeed and offering people and communities the resources to flourish a bank that recognizes that economies fluctuate but values don't [Music] and never forgetting our only ambition is to help you fulfill yours what would you like the power to do [Music] you

2021-10-26 22:15

Show Video

Other news