Trade wars and pandemic-related supply chain disruption forced almost every company back to the drawing board in 2020. Many businesses are now accelerating the switch from inefficient, paper-based processes of the past to embrace digital solutions that have long been talked about in the industry, but slow to scale. Here are a few ways Bank of America is helping businesses to modernize their supply chains.
New tech fuels trade finance breakthroughs
See how you can cut paper and make smarter decisions
- Business continuity concerns, supply chain health and efficiency imperatives are accelerating the transition to digital trade finance
- Simpler workflows, easier integration, broader visibility, and smarter data-driven decisions through emerging technologies represent key competitive advantages
- Digital trade finance solutions and guidance from Bank of America address key needs, including real-time tracking of goods and funds, ERP integration, simplified supplier onboarding, and driving the collaboration tools and standards of the future.
Reasons to change
In an industry that’s notoriously paper-heavy, digitization can help you create simpler workflows, track flows of goods and funds in real time, and make smarter financing decisions based on this data.
And there are other reasons to digitize that apply more broadly across your business. Last year taught everyone that business continuity is essential. Ensuring remote access to treasury portals—such as our CashPro® Trade solution—and protecting your systems against cyber threats are critical to your future success.
2020 factors that sped digital adoption
- Working from home
- Supply chain disruption
- Adoption of e-signature
- Goods-tracking via blockchain
At Bank of America, we’ve built a complete suite of digital trade finance tools so that we can offer the right mix to meet every client’s unique needs. From blockchain to data capture and ERP connectivity, our perspective is to create a custom digital fit that works for you. Let’s run through some of our offerings.
Supplier enablement portal—Our unique portal can greatly simplify supplier onboarding. Rather than rely on paper, it uses digitization, automation and AI to give you better data, easier workflows, personalization for strategic suppliers and enhanced reporting for optimized working capital management.
Our supplier enablement portal was recognized as a Trade Finance Innovators 2020 winner by Global Finance magazine.
Blockchain—Distributed ledgers that enable all parties to track goods and funds in real time are evolving to create an ecosystem that will facilitate real-time tracking of goods, financial settlement and ability to forecast cash more efficiently. By integrating physical and financial supply chains into one system that’s visible to buyers, suppliers and their banks, it’s possible to digitize trade transactions like never before.
ERP connectivity—Through a new concept called “supply chain as a service,” we are creating the ability integrate directly with your ERP system to identify suppliers and transactions that can shore up the financial health of your supply chain through early-payment financing.
The future of trade finance
Here’s a look at some other areas of focus.
The Marco Polo Network—BofA is part of a consortium that’s creating a network of buyers and suppliers across key trade instruments utilizing blockchain technology that can make it much easier to exchange trade info. Marco Polo members can collaborate in near-real time and experience more reliable transaction initiation and updates.
The Digital Standards initiative—While creating the digital solutions outlined above, we are also helping to develop the digital standards that will enable these solutions to function and communicate with one another. Through industry leadership and close collaboration, we’re making the future of trade finance open-sourced, interoperable and networked.
Reach out to your BofA representative to learn more about digital trade finance solutions and guidance we can offer you.
Ann McCormick, Director, Sr. Product Manager, Global Trade & Supply Chain Finance, Bank of America