Alfa-Bank and NLMK launch Foreign Trade Finance Pilot Transaction with Commerzbank and Vesuvius GmbH via Marco Polo

Alfa-Bank and NLMK launch Foreign Trade Finance Pilot Transaction with Commerzbank and Vesuvius GmbH via Marco Polo
11.10.2019 10:47 am

Alfa-Bank and NLMK launch Foreign Trade Finance Pilot Transaction with Commerzbank and Vesuvius GmbH via Marco Polo

Banking

Alfa-Bank and Novolipetsk Steel Company (NLMK), in cooperation with Commerzbank, Germany, and Vesuvius GmbH, Germany, have launched a pilot project of cross-border payments via the Marco Polo international trade finance network. For Marco Polo, it is the first Russian-German import-export operations financing project.
 
The pilot project objectives are to build a digital end-to-end trade finance and supply chain finance solution on a blockchain platform. Marco Polo offers to the network members a set of Application Programming Interfaces (APIs) for direct interaction with ERP systems, allowing international trade participants to make payments, create irrevocable payment obligations and discount accounts receivable within a unified transparent system of interaction with partners.
 
“We launched our first distributed ledger technology in trade finance as early as 2017. Since then, corporate blockchain solutions have been considerably elaborated, and earned our clients’ confidence and proved their applicability to real business processes. Projects such as Marco Polo create added value for clients ensuring more international trade transparency and manageability thanks to integrated bank payment, finance and discount instruments”, said Dina Merkulova, Head of Trade Finance at Alfa-Bank.
 
Current corporate purchase and supply processes are too cumbersome due to the execution and exchange of multiple paper documents, while banking instruments are not integrated into clients’ business processes. The Marco Polo network based on R3 Corda allows Alfa-Bank to offer its clients a wide range of international trade finance solutions and seamless integration into the global trade ecosystem.
 
“Our decision to take part in the pilot project was prompted by our intention to optimize the process of interaction with partners based on blockchain technology. We expect Marco Polo to ensure seamless collaboration of several sides engaged in international trade operations (banks, suppliers, insurance companies, etc.) with a flexible access to working capital financing instruments to the parties”, said on behalf of NLMK Director for Treasury, Anna Sokolova.
 
“Our international corporates show continuous interest in piloting the Marco Polo Payment Commitment together with us and banks of our global network, like Alfa-Bank. This new instrument, which is provided upon digital processing and matching of trade data in the Marco Polo network, meets our customers’ growing demand for increased speed of transaction and transparency, optimised financing, enhanced working capital management and possible integration of ERP systems”, said Enno-Burghard Weitzel, Commerzbank’s Global Head of Trade Finance Products.
 
“Integrated working capital solutions directly related to the contract, issued invoices and shipping documents definitely benefit all the parties, and our experience with Marco Polo demonstrates that core processes can really be streamlined”, added Christian Greving, Cash Coordinator Treasury, Vesuvius GmbH.
 
International trade is a multilateral process involving exporters, importers, logistics services providers, insurers, customs, banks and many other parties. Long-term blockchain-based solutions will make it possible to totally abandon the traditional practice of isolated paper documents mailing by post, reduce overhead cost and simplify business processes by connecting various stakeholders of trade transactions to the same network and sharing data. 

Related News

PayNearby announces partnership with Sub-K Impact Solutions; enables access to loan repayment options through its retail network

India’s largest agent banking platform, PayNearby is happy to formally announce its partnership with Sub-K Impact Solutions Ltd (Sub-K), a leading player facilitating loans,... Read more »

OpenLegacy to support Shimane Bank in accelerating its digital transformation

OpenLegacy, a pioneer in digital-driven integration for core legacy systems, was recently... Read more »

Banking Circle secures five finalist places at 2020 Emerging Payments Awards

Banking Circle, the financial infrastructure provider to Payments businesses and Banks has secured 5 finalist slots in the 2020 Emerging Payments Awards.... Read more »

Lanistar chooses W2 to power its new banking alternative

W2 partners with Lanistar, ahead of its polymorphic debit card launch that will revolutionise how customers manage their money. W2, the... Read more »

FSS brings AutoPay and conversational capabilities to UPI

FSS (Financial Software and Systems), a global digital payment and financial technology company, has augmented its UPI 2.0 platform with a range of new... Read more »

NatWest brings Apple Pay to business credit cards

NatWest today brings Apple Pay to its Business credit card customers, providing a safer, more secure and private way to pay that helps... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel