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Bank Of America Introduces Innovative Tool To Digitize Trade Finance

Bank of America revolutionizes trade finance with CashPro Supply Chain Solutions, introducing Open Account Automation for faster invoice approval. Explore how digitization improves efficiency and working capital optimization in the supply chain.

Morgan Barrons
Morgan Barrons
Sep 19, 20234.3KShares95.9KViews

Bank of America is taking significant steps to modernize and transform trade finance with the launch of CashPro® Supply Chain Solutions. This platform represents a multi-year investment effort aimed at benefiting all parties involved in the supply chain by providing enhanced digitization, improved process efficiency, and optimized working capital.

The first module of CashPro Supply Chain Solutions, Open Account Automation, targets one of the most common and time-consuming processes in global trade - invoice approval and payment. Traditionally, this process could take days or even weeks to complete. However, with Open Account Automation, Bank of America is revolutionizing this aspect of trade finance by reducing approval times to a matter of minutes.

Geoff Brady, head of Global Trade and Supply Chain Finance in Global Transaction Services (GTS) at Bank of America, highlighted the significance of digitization in trade finance, stating

Eliminating that dependency [on traditional manual processes] was central to the design of CashPro Supply Chain Solutions, through which we're introducing digitization on behalf of network participants.

Open Account Automation is designed to enhance the overall experience of participants in the supply chain by providing greater visibility, speed, and automation. Companies utilizing this module will enjoy several benefits, including:

  • Digital Supplier Onboarding: Suppliers gain access to real-time data, offering instant visibility into invoice approval status and discrepancies resolution.
  • Data Extraction: The platform extracts data from document copies and incorporates it into the automated approval process.
  • Matching Purchase Orders and Invoices: Automation allows for the matching of purchase orders with invoices and other logistics information.
  • Buyer Control: Buyers can control invoice approval based on information from suppliers, logistics providers, and their own warehouse processes, including the ability to automate discrepancy resolution.
  • Automated Payment Disbursement: Payments to suppliers are automatically disbursed once an invoice is approved and matures.
  • Early Payment Option: In the near future, suppliers will have the ability to select invoices for early payment.

Jay Davenport, global co-head of Corporate Sales in GTS at Bank of America, emphasized the importance of real-time information in global commerce, stating,

With global commerce operating 24/7, companies need the ability to view and act on information in as close to real-time as possible. Open Account Automation offers that transparency and the ability to self-serve.

This initiative by Bank of America reflects its commitment to embracing digital innovation to transform the trade finance landscape. By providing faster, more transparent, and efficient solutions, Bank of America aims to empower businesses engaged in international trade.

Trade finance has long been known for its complexity and reliance on paper-based processes. Bank of America's CAS (short for "Commerce Automation Services") platform aims to change this by providing a seamless and efficient way for businesses to manage their trade transactions.

According to Bank of America's official newsroom announcement, CAS promises to enhance the entire trade finance ecosystem. It will facilitate faster and more secure transactions, reducing the risk of errors and delays commonly associated with traditional paper-based systems.

The introduction of CAS underscores Bank of America's commitment to innovation and its desire to remain at the forefront of the financial industry. By digitizing trade finance processes, the bank aims to empower businesses and organizations with the tools they need to thrive in an increasingly digital and globalized marketplace.

The CAS platform launch is expected to have a profound impact on the world of trade finance, potentially setting a new standard for efficiency and transparency in international trade transactions. Companies engaged in global trade can look forward to a more streamlined and cost-effective experience as they leverage this innovative digital solution.

Bank of America's ongoing efforts to modernize trade finance demonstrate the financial industry's commitment to embracing technological advancements to meet the evolving needs of businesses worldwide.

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