YES Bank does first ePresentation of trade documents
YES Bank recently completed a first-of-its-kind digital transaction in the form of e-Presentation, which involves the end-to-end electronic presentation of export documents. Ajay Rajan, group president and global head Transaction Banking Sales at the bank
N. Mohan: Please explain the significance of ePresentation of export documents and the milestone YES Bank could achieve in this domain. Does it involve collection of funds too?
Ajay Rajan: YES Bank completed a first-of-its-kind digital transaction with Welspun Global Brands (WGBL), a subsidiary of Welspun India, in the form of ePresentation, involving endto-end electronic presentation of export documents. With this transaction the bank becomes first Indian Bank to facilitate electronic presentation of export documents, estimated to fast-track exports worth over US$2.3 billion, thereby digitizing trade process in India.
The transaction has been made possible by the platform provided by UK-based Bolero International. The platform facilitates presentation of documents in an electronic way, including transport document ie, Bill of Lading (BL). Movement of funds would continue as per extant international banking practice and while Bolero does not play a role there, the eventual timelines for fund movement does get facilitated since Bolero helps cut down the document handling TATs between stakeholders.
Which is the communication medium through which the transaction takes place?
Documents are transmitted through the Bolero platform. All parties are required to get onboarded on Bolero. Established in 1998 by SWIFT and the global logistics and insurance industry, Bolero International has built a strong reputation and market leadership position in driving the digitization of global trade. It delivers secure, end-toend, cloud-based services across the entire global supply chain. By digitizing trade processes and transactions, the platform is making trade safer, smarter and faster.
Can you give details of the whole process involved in this transaction?
The end-to-end process has been digitized by Bolero, which includes the electronic preparation of export documents between the bank and the commercial participants. Bolero is cloud-based software offered on a SaaS model with no additional capex investment required from the bank’s end. It provides flexibility of usage by working on any Windows computer with internet access, aided with some minor configurations from Bolero. In terms of the specific process flow carried for Welspun, the shipping carrier creates the eBill of Lading, details of which in turn are routed by them along with other digitized documents to YES Bank for regulatory compliance. The documentary flow between Welspun and their buyer is also digitized through Bolero.
Any other corporates in India using this facility?
Welspun is YES Bank’s first client in India to be onboarded on the Bolero platform for documentary flow business.
Besides TAT, what other benefits will accrue to the corporate opting for this mode of transaction? What could be the cost savings for the corporate?
Asides of the expeditious TATs, the client and the bank benefit greatly in terms of digitizing documentary requirements and deriving benefits from resource efficiency, reduction in courier charges and avoiding potential demurrage charges on account of delay in physical movement of documents.
How does the system integrate with the systems of that banks offer to corporates?
The platform delivers secure, seamless connectivity for the entire trading community. Users can quickly access, track and manage their transactions via a secure online interface. It is designed and built to give flexibility and control to connect to applications in a way that fits corporate business best. Integration of third party applications into the Bolero platform is also an option to utilize its core capabilities.
What are the unique advantages of the platform?
We have derived tangible benefits from adopting the Bolero platform by bringing in global best practices into India. YES Bank takes into account various aspects/ factors wrt selection of trade financing platform - for instance, growth, profitability, maximizing efficiency, increasing market share, meeting changing customer needs and maintaining compliance with regulations. Bolero has built a strong reputation and a market leadership position in driving digitization of global trade. It has offerings across trade products like LCs, guarantees, documentary collections, supply chain etc which help us in our endeavor to offer end-to-end integrated digital trade solutions to our customers.
Ajay Rajan explains how ePresentation of trade documents bring in better TAT, benefits to clients and banks as well