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

Banking Frontiers - - Digitization - Mo­[email protected]­ingfron­

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

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