The document provides an agenda for a conference on 25th September 2019 focusing on digitization and blockchain in trade. The schedule lists presentations from companies such as Capgemini, Dun & Bradstreet, Infosys Finacle, BNP Paribas and Standard Chartered on topics including trusted data exchange, reimagining trade processes with blockchain, and the future of trade finance. It also includes speaker details and notes on expected business value from blockchain technologies.
2. 22
Schedule
10.00-11.00 CAPGEMINI, DUN & BRADSTREET
Trusted Data Exchange for Supplier Onboarding & KYC
11.15-12.15 INFOSYS FINACLE
Reimagining Trade Processes with Blockchain
13.30-14.30 VOLTRON - BNP PARIBAS, HSBC, SEB, STANDARD CHARTRERED
The Roadmap for Trade Transformation and Digitisation
15.00-16.00 TRADEIX + THE MARCO PLO NETWORK - COMMERZBANK, DÜRR
AKTIENGESELLSCHAFT, LLBW
The Future of Trade Finance is Now
4. Abbas ALI
Global Head of Identity & KYC
R3
+44 7496 784318
abbas.ali@r3.com
linkedin.com/in/askabbas/
Damien DE CHILLAZ
Head of Blockchain & B2B Platforms
VP - Capgemini Business Services
+33664856307
damien.de-chillaz@capgemini.com
linkedin.com/in/ddechillaz/
Speakers
Manuel SEVILLA
Chief Digital Officer
VP - Capgemini Business Services
+33680964222
manuel.sevilla@capgemini.com
linkedin.com/in/msevilla/
Chris LAWS
Global Head of Product Development
Dun & Bradstreet
lawsc@dnb.com
linkedin.com/in/chris-laws/
Nick FORD
Head of Alliances
Encompass
nickford@encompasscorporation.com
linkedin.com/in/nickford03/
6. 6
M Y E N V I R O N M E N T
Ethics – Compliance / GRCProcurement - Category / Invoice
TRANSPARENCYLOGISTICS
LEGAL
HR
VOLATILE REGULATORY ENVIRONMENT
INCREASED COMPLEXITY OF 3RD PARTY RELATIONSHIPS
COMMODITY & EXCHANGE RATE VOLATILITY
CHANGING WORKFORCE
VOLATILE GLOBAL GEO-POLITICAL UNCERTAINTY
SUSTAINABILITY
INTERNAL TRANSFORMATION GOALS – DIGITAL & PROCUREMENT
CORPORATE GOALS & POLICIES – CSR, ESG, DIVERSITY
INTERNAL MASTER DATA INITIATIVES
COST REDUCTION PRESSURES
BEING COMPLIANT
TRANSPARENCY
M Y P R E S S U R E S
Transaction Layer Intelligence Layer Governance & Policy Layer
M Y R E L A T I O N S H I P S
P r o c u r e m e n t & C o m p l i a n c e C o n v e r g e n c e
7. 7
Priorities Are Evolving And ChangingWhere Procurement &
Compliance Professionals SpendTheirTime
Source: D&B Sentiment Index, Feb 2019
P r o c u r e m e n t & C o m p l i a n c e C o n v e r g e n c e
8. 8
O L D V I E W
VISIBILITYBARRIER
80%
SPEND
With 20%
Of Suppliers/
Customers
20%
SPEND
With 80%
Of Suppliers/
Customers
N E W V I E W
– Sanctions
– PEPs
– Beneficial Ownership
– Child Labour
– Diversity
– CSR
– Money laundering
– Bribery and corruption
WHAT DATA GOES UN-CHECKED?
The Convergence Of Procurement & Compliance
A C O R P O R A T E V I E W O F I N D I R E C T S P E N D , T H I R D - P A R T Y D U E D I L I G E N C E & K N O W Y O U R T H I R D P A R T Y
KY3P
P r o c u r e m e n t & C o m p l i a n c e C o n v e r g e n c e
9. 9
A Strong Risk Framework Is Required To Ensure A Successful
Due Diligence Program
T H I R D P A R T Y R I S K
F I N A N C I A L
Insolvency
Fraud,Theft
Litigation
Commodity Price
R E P U T A T I O N A L
Modern Slavery,
Child Labour
CSR, Ethics
Labour Laws
Health & Safety
R E G U L A T O R Y
Bribes,AML, FCPA
Environmental
SOXViolations
Denied Parties
O P E R A T I O N A L
Situational Awareness
/ Disasters
Geopolitical
Instability
Geographic
Concentration
Performance
Quality
Cyber Security
Supplier/ Labour
Shortages
Infrastructure
G E O G R A P H I C A L
Business Continuity
Exchange Rates
Logistics
Sanctions List
“Companies can’t simply rely on paper-thin
assurances by employees, distributors or
customers.”
Chief of the SEC Enforcement Division’s Foreign Corrupt Practices
Unit
P r o c u r e m e n t & C o m p l i a n c e C o n v e r g e n c e
10. 10
Source: Deloitte Third Party Governance & Risk Management
The Convergence Of Procurement & Compliance
A C O R P O R A T E V I E W O F I N D I R E C T S P E N D , T H I R D - P A R T Y D U E D I L I G E N C E & K N O W Y O U R T H I R D P A R T Y
Increasing Complexity of Third Party Relationships
ORGANISATION
P r o c u r e m e n t & C o m p l i a n c e C o n v e r g e n c e
11. Top Duties and Tasks That Benefit From Convergence
11
Source: D&B Compliance & Procurment Sentiment Report, Feb 2019
P r o c u r e m e n t & C o m p l i a n c e C o n v e r g e n c e
Process Management
53%
Laws & Regulations
47%
Developing & guiding
best practice
44%
12. 12
Source: Deloitte Third Party Governance & Risk Management
The Convergence of Procurement & Compliance Summary
P r o c u r e m e n t & C o m p l i a n c e C o n v e r g e n c e
Deliver competitive
advantage – faster
– efficiently – lower
risk
Full
integration
of teams
Closer
alignment of
concerns &
goals
35. Blockchain projected to create billions in business value
$300-$400bn
Economic value created
by blockchain by 2027
- UBS
$60-$80bn
Annual cost savings from
blockchain across 4 use
cases alone
- McKinsey
$3.1tr
Worldwide total
business value added
by blockchain by 2030
- Gartner
36. Business model change in the new distributed ecosystem
Siloed one on one
relationships
Trusted central
parties
Conventional
Way
Ecosystem
driven
No central party
Platform way
with blockchain
37. We have rolled out solutions in three areas
Payments ConnectTrade Connect Identity Connect
38. Helping banks across all strategy levers
Through our Blockchain solution
Create a Network
Network between your
partners, customers and
stakeholders
Inter banking
partners network
Network between your
international subsidiaries /
entities and corporate clients
Intra banking group
network
Network for Trade or
Payment service
offerings
As-a-service
network
39. Finacle Trade Connect
An advanced blockchain based solution to simplify
and digitize trade finance business processes
Connects banks, trade
partners and corporates on a
single DLT network
Driving Drastic reduction in cycle
time, unprecedented efficiencies
and customer value
End to end trade
products supported
Trade Finance – Open Account,
Letters of Credit, Bank Guarantee, Bill
Collection, C2C & B2C Transactions
Supply Chain – Bill Discounting,
Invoice Financing, Factoring & Reverse
factoring, Bill of Exchange
Other Functionality – Bid/Auction
Marketplace, Internet banking mode,
Branch and RM login
41. India Trade Connect
Network between frequent partners, customers and other stakeholders
Pilot started with 7 banks.
Today at 14 banks
Letter of credit
cycle time
reduced by 75%(2-3 days)
42. ICICI Bank and corporate network
Network between international subsidiaries and corporate clients
Banking group and corporate communication network
500+ corporates on-boarded
43. ICICI Bank - Trade as-a-service
Network between international subsidiaries and partner banks
Canada
Banking group and partner banks network
7+ landing hubs in strategic corridors
44. Banks in India geared up to launch BIC
Blockchain infrastructure company (BIC)
• BIC is an association of banks and technology players exploring, building and implementing DLT
• Exploring of use cases with regulators for Trade
• Creating Infrastructure for operating on high volumes
• Facilitate information sharing among network banks
14
Banks
85%
Trade Volumes
46. Finacle – R3 Global Trial
5 week engagement to educate end customers and run a multi-institution trial of an application
Educate
Online materials and
webinars on the use case
and prototype built on
Corda
Deploy
Guided deployment of
the CorDapp
Trial
Multi-institution trial of
CorDapp over several days to
show benefits, replicating
real-world scenarios
47. Objectives
Educate the local
banking community
on emerging
technologies
Pilot trade
finance ecosystem
with partners
Validate business
benefits of application
Accelerate trade
finance initiatives
through
collaboration
48. Trial highlights
• 18 banking groups across 19 countries
• Domestic and international trade processes simulated by forming intra-country and inter-country groups
• Intra group processes simulated by Gulf International Bank with subsidiaries in KSA, Bahrain and UAE
• Over 400 transactions conducted covering front-to-back office processes
External Logos used are registered trademarks of the respective organizations
49. Results and Feedback
67 percent of respondents
believe that by having
transacting parties on
shared distributed ledger,
they can cut down the
processing time by over 30
percent
As many as 66 percent of
participants believe that
in the long run their
organizations can reduce
at least 20 percent of
their trade finance
operational costs
67 percent of respondents
believe that there will be
‘Transformational Impact’ on
customer experience
improvement
Reduction in
processing time
Reduction in
operational cost
Transformational Impact on
Customer Experience
20%30% 67%
50. Industry has recognized our work !
• ‘Emerging Innovation’ 2017
• ‘Trade & Supply Chain’ 2018
‘Innovative Excellence’
‘Innovation in Emerging Technology’
• Juniper Future Digital Awards – 2018
• ‘Best Blockchain Deployment in banking and payments’2018
• ‘Best Blockchain Platform – Trade Connect
• ‘Best B2B Payments Platform
51. Our clients have endorsed our capabilities
We are excited about
the potential of India
Trade Connect initiative
to digitize end-to-end
trade finance operations
and bring about a
speedy, transparent and
secure experience for
our corporate clients.”
Anil Agarwal
EVP & Head - Transaction
Banking, Axis Bank
We are delighted to partner with Infosys
Finacle to successfully set up ‘India Trade
Connect’ - a blockchain based trade network
that will enable end-to-end digitised trade
transactions across the country. We believe,
this will enable automation, increase
transparency as well as enhance efficiency
across trade and supply chain operations.
With more organisations adopting the
blockchain technology, it holds immense
potential to offer a seamless network for all
stakeholders on a single platform.”
Ajay Gupta
Senior General Manager, ICICI Bank
IndusInd Bank has taken multiple initiatives in
blockchain and our alliance with Infosys Finacle is
another step in that journey. We believe that this
platform will help us take a quantum leap in
digitization and also improve the processing
efficiency of trade transactions. We are keen to
leverage the platform to build a differentiated
product, deliver a better experience for our
clients and are confident that this collaboration
will help redesign the way trade and supply chain
finance transactions are processed in the
country.
Ramesh Ganesan
Senior Executive Vice President,
Transaction Banking, IndusInd Bank
External Logos used are registered trademarks of the respective organizations
52. Summary - Finacle Trade Connect is the leading trade finance solution
Network Effect
• The largest network
of banks and
corporates
• Connectivity to other
business networks
enabled using Corda
Flexibility
• The most flexible
solution
(technology platform,
infrastructure,
network ownership,
core integration etc.)
Production ready
• 500+ live corporates
using Finacle Trade
Connect
• Used by 3 consortia
and over 25 financial
institutions globally
Completeness
• The only full trade
finance offering
(open account and
documentary trade)
• Complementary
Payment and KYC
capabilities available
Open
• Open to all banks
and corporates
• Open to third party
trade service
providers
53. You can start your blockchain journey in just two days
Join the test network today
Meet us at booth Y141
2
days
59. 59
“Transforming Global Trade”MISSION
For CorporatesFor Banks
Open, decentralised trade network connecting
banks to importers, exporters, and other trade
participants in the ecosystem
End-to-end digital trade solution to meet the
needs of corporate clients
Serve clients globally – agnostic of geography and
sector
Digitally enabled platform making trade
transactions faster, more efficient and reducing risk
Multi-bank, open network that provides financing
and working capital needs for importers and
exporters
Leverage established global rules & standards
60. 60
$24.8T
$16.0T
1
2
3
4
Traditional Doc Trade
5
Traditional
Doc Trade
Open Account
Payment Advances Open Account
DLT Open Account
(from Doc Trade)
DLT Doc Trade
(from New Trade)
DLT Doc Trade
(from Open Account)
DLT Doc Trade
(from Trad. Doc Trade)
Payment Advances
Global merchandise volume (USD T)
Note: Chart not drawn to scale
Source: Bain DLT industry business case model
I L L U S T R A T I V E
DLT will enable $1.1T of new Trade volumes by 2026
~40% of Traditional Documentary Trade
($0.9T) will remain, after the rest moves to
DLT solutions
~40% of Traditional Doc Trade ($0.9T)
move to DLT Documentary Trade for
better service levels & lower fees
Small portion of Traditional
Documentary Trade to DLT Open
Account due to greater trust & visibility
Small portion of Open Account to DLT
Documentary Trade for risk mitigation &
cheaper financing
New Trade volumes ($1.1T) due to DLT
ability to meet trade needs; ~30% moves to
DLT Doc Trade
Through 5 key volume shifts
5
4
3
2
1
61. 61
Benefits
Doesn’t
Transfer funds
Payments are sent through
SWIFT, not Voltron. Yet
Auto-Match All Fields
As the industry has not yet adopted digital
standards, documents still need to be
checked
Bitcoin anything
No Crypto currency
No public ledger
No energy waste
Buying
Digital drafting
Create, edit, and agree a
draft letter of credit
between buyer and seller
Selling
One connected platform
Banks issue and advise and confirm
letter of credit on the platform
digitally (no SWIFT)
Track and amend
Amendments initiated & agreed to
by all parties with real time tracking
Digital documents
Direct integration with
leading electronic bills of
lading from Bolero and
essDocs
Manage discrepancies
Errors/discrepancies can be
highlighted and fixed directly on
Voltron
Bank instructions
All seller-to-bank instructions for
acceptance, confirmations, loans, and
bill instructions shared in Voltron
Faster to improve
working capital
Client Centric targeted
development
Paperless for speed and
accuracy
Leverage existing global
standards for scale
62. 62
Issuing bank HSBC ING BNP Paribas Bangkok Bank HSBC HSBC Standard Chartered
Advising bank ING HSBC HSBC Bangkok Bank HSBC HSBC Standard Chartered
Importer Cargill Tricon Cargill Bukitmega
Masabadi
China SDIC Int’l
Trade Nanjing
Babyshop,
Landmark Group
PTT Group
Exporter Cargill Reliance RioTinto GC Marketing
Solutions
Fox and Lille Bee Dee
Industries
IRPC
INTERNAL
Year of formation: Jan
2018 (inception of
Voltron)
Target clients: Banks
with significant trade
volume; Large
importers and
exporters
Management: To be
set up from October
2019
Ownership: Member
banks, delivery
partners and external
investors
Current
Members &
Partners
Business
Overview
Examples
of
Transaction
s
Completed
Powered by R3’s blockchain software Corda, Voltron will harness the power of
decentralization to bring together the world’s banks, trading companies, and logistics
partners onto a common network for the first time.
The launch MVP will be letters of credit, a global standard in trade, with others to
follow
Member
Banks
Delivery
Partners
64. Joshua Kroeker
Director, Blockchain Lead for Global
Commercial Banking
HSBC
Jordane Rollin
Executive Director & Head, Digital Transformation,
Trade Finance Global Products
Standard Chartered Bank
Alain Verschueren
Head of DLT trade & treasury solutions
BNP
Cal Wegner
Managing Director, Head of APAC
R3
Paula da Silva
Head of Transaction Services
SEB
68. Beta network is launching
Beta Network
Innovators
Join Now
Lightweight network agreement
prior to full rulebook and
membership
No Fees
Free node hosting for corporates
Project
Investors
Complete
Defining memberships
& roadmaps
Focused on
integrations &
partnerships
Continuous delivery
Bespoke pilots
Production
Everyone
Q1 2020
Various membership and
hosting options
Built on Corda
Network and Corda
Enterprise
Full network rulebook
Join the global network
Production ready application with
rich user guides, APIs and SLAs
Unlimited transactions on the
pre-production network
70. 7070
TradeIX + The Marco Polo Network -
The Future of Trade Finance is Now
The Blockchain Applications Driving the Future of Corporate Transactions
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Confidential - Not for Distributionmarcopolo.finance Confidential - Not for Distributionmarcopolo.finance 72
Introduction
“We want to better serve trade
customers’ needs by converging the
physical, information and financial
supply chains with an optimized use of
digital trade data to enable easier
access to credit, enhanced risk
mitigation, increased transparency and
automation on a global digital
platform.”
- Mandate from Founding Banks
Now the largest and fastest growing distributed trade and
working capital finance network in the world.
A multi-bank, multi-product offering that redefines the
customer experience, creates a new revenue opportunities,
while reducing costs, friction, and risk.
A digital, distributed platform that allows trading parties to automate
and streamline their trade and supply chain finance activities.
Trading parties exchange data and transact over a
distributed ledger powered network purpose built for trade.
Founded in 2017 by a group of leading financial institutions
and enterprise technology providers, TradeIX and R3.
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Early Adopters
73
The largest and fastest
growing distributed trade
network in the world.
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Marco Polo Network
Convergence of data from physical, financial, and informational supply chains
Buyers SuppliersBanks FundersInsurers Logistics
Shipping and Logistics
Informational
• Invoices
• Purchase Orders
• Payment Undertakings
• Financing Requests
• Financing Offers
• Trade Loans
• Bank Guarantees
• Trade Payments
• Maturity Payments
• RPAs
• MRPAs
• Other Digital Assets
• Identity Verification
• Digital Passport
• UniqueID
• Document Collection
• Vendor Master Data
• Credit Risk Data
• Compliance Risk Data
• Sanctions Screening
• Reputational Risk Data
• Political Risk Data
• Track-and-Trace Data
• Provenance Data
• IoT Data
• Performance Data
• Shipping Events
• Logistics Events
• eBLs
• Shipping Documents
• Logistics Documents
• Customs Documents
Distributed
Ledger
Financial
Digital
Assets
Smart-
Contracts
Platform
& Apps
Participants
76. HOW? Open your camera, scan the
QR code and register your interest – we
will be in touch!
Join the Marco Polo
Global Trial
WHO? Join TradeIX, R3 and over 40
global corporates and banks
WHEN? Kicking off 30th September