shaping the future of trade services. about globaltrade corporation page 2 globaltrade corporation...

Shaping the future of Trade Services

About GlobalTrade Corporation

GlobalTrade Corporation (GTC) is a software developer and applications service provider whose product solutions improve the world of trade finance and trade services.

GTC’s @GlobalTrade technology helps buyers, sellers, traders, and financial institutions communicate faster and more efficiently to free up working capital, realize cost savings, reduce risks and improve monitoring and control

Our customers are:

Corporations that need consolidated access to multiple banks and logistic providers

Banks that require trade finance and trade services software solutions to meet their clients’ needs

Our Expertise is in multi-bank financial supply chain systems

Best Independent Trade Platform/System Provider for 2005, 2006 and 2007 by Euromoney’s Trade Finance Magazine

2006 Canada’s 10th Fastest Growing Company by Profit Magazine

2005 20062007

Clients

Banks & corporates embark on the same objectives

increase process efficiency and security

reduction of costs through improved process efficiency and increase of STP (straight-through-processing)

lower operational risks due to reduction of manual processing

complete audit trails for monitoring of all process steps (audit compliance, US-GAAP, SOX)

integration with existing ERP/BackOffice Systems

… but follow different concepts

low

high

high

bank

s pr

efer

ence

s

customers preferences

proprietary Bank applications

(one-to-many concept)

Multibank /-participant

platform

(many-to-one concept)

external communication

gateways

(e.g. Propriatary networks, DTA,

secure email etc.)

Proprietary bank systems (one-to-many concept)

Bank view

high level of BackEnd integration

highest STP-ratio possible

high level of customer retention

Customer view

use of various bank portals

data is hosted on various external resources – difficult to consolidate

no customization

no ERP/ Back-Office intergration

Bank

Client

Client

ClientClient

Client

Client

External communication gateways

Bank view

BackEnd integration needed separately for each message format

use of network results in additional cost

low STP-ratio if not integrated into BackEnd systems

data transmission via web requires PKI agreements

Customer view

separate BackEnd application needed

use of network result in additional cost

ERP/ Back-Office intergration is cost intensive

the concept of data exchange via external networks leads to multiple identical data sets

data transmission requires PKI agreements

CorporateBank A

Bank B Corporate

Service Provider A

Service Provider C

Service Provider B

Multi bank/participant Platform (many-to-one concept)

Bank view

no participation fees

BackEnd integration can be staged (depending on the number of customer applications)

Customer view

one data source

customization possible

easy ERP/ BackOffice integration

complete audit trail

all participants in a transaction can be involved

CorporateBank 1…n

customs carrier

supplier buyer

insurer

Corporate Centric Multi-bank System Improves Visibility Monitoring & Control for Treasury

insurances

banks

cham

bers

of

com

mer

ce

freight forw

ards

carriers

surveyors

logistics

procurement production

salesfinance/treasury

entity 1... n subsidiaries

All process participants interact on one web-based true multi-bankand multi-entity process platform:

@GlobalTrade

@GlobalTrade Platform

web-based for global connectivity and quick deployment

interfaces to internal and external systems

modular architecture Global Trade Management systems

can be installed internally, or at a trusted FI provider

CollaborationProgress

Monitoring

ERPInterfaces

Credit Limit Monitoring

Multi-Office Management

Workflow

DocumentGeneration

Billing User-Defined

ReportingArchiving

Back-officeandERP

Systems

Data & Access Security

Data Mapping

Multi-Bank and Logistics Connectivity

BankInternetInternet

Open Account Financing

Standby LC/Guarantee Receipt

Export LC / Collection

Custom Built Systems

Standby LC/GuaranteeIssuance

Import LC / Collection

Global Trade Management Systems

InternetInternet TSP

Business & Network Modules

Case Study: Guarantee Issuance Solution

Initial Situation

Management of L/G is decentralized and handled independently by each subsidiary

L/G exposure with 47 banks (applied by 52 subsidiaries)

Reconciliation of L/G data and settlement of fees is time consuming and prone to errors

Central treasury has to monitor the terms and the availability of L/G facilities and the allocation of business to the banks

Key Objectives

Harmonisation of documentation and saving of L/G commissions

Improvement of transparency and avoidance of discrepancies between banks' and EADS' records

Preserve flexibility for subsidiaries but enforce standard policies

Improve efficiency

Achieve a better diversification of business allocation between the banks

High and quick acceptance of the new solution by subsidiaries and banks

Case Study: Guarantee Issuance Goals

Case Study: Guarantee Issuance Solution

EADS successfully arranged a new L/G Umbrella (existing exposure was rolled in) with 25 identical bilateral L/G facilities that were allocated in a quantity tender.

EADS appointed HVB as a service provider to 25 banks and 38 EADS subsidiaries .

EADS N.V.

38 Subsidiaries

25 Banks

L/G Agent

25 identical Bilateral Facility Agreements

Co-ordination Agreement

Sub-Limits / Guarantees

Case Study: Guarantee IssuanceTechnology

Solution:

Web-based for 24x7 availability and easy rollout to 38 EADS divisions and 25 banks

Configurable workflow engine manages all authorizations incl. syndications and club deals

Automatic e-mail alerts and tracers ensure compliance with response-time guarantee

Integrated credit line management module automates monitoring credit utilizations

Flexible transaction data model simplified conversion of the existing guarantee portfolio

Billing module automates calculation and allocation of fees including previous period adjustments and multi-bank reconciliation

6 months from concept to production

Substantial reduction of operational costs

Bank Agent

LG Issuance

WWW

Multi-bank

WWW

38 divisions

25 banks

Agent System

Case Study: Export Documentary Credit and Collection Solution

Automotive Manufacturer

Case Study: Export LC & CollectionChallenges

Improve cooperation between factories, that prepare documents, and L/C department, that receives and allocates L/C advices

Improve visibility of each step in the transaction process

Reduce number of discrepancies in the presentation

Improve efficiency by automating transfer of L/C information into invoicing system and relevant product information into the @GlobalTrade system for preparation of documents

Allow L/C department to electronically pre-check L/Cs with banks

Enhance straight through processing through enablement of foreign banks to send export L/C messages electronically

Case Study: Export LC &Collection

Solution

Electronic Delivery of export L/C messages

Financial release and cooperation between the L/C Department and Factories

L/C department can assist factories regarding issuing compliant documents

Logistic providers can be connected to the platform and exchange electronic documents with the L/C Department, Factories and others

Global visibility and real time reporting

L/CDepartment

e-Advices

Presentations

Payments

Instructionsand

Documents

Domestic and Foreign Banks

Factories

Logistics Providers

Case Study: Export LC & CollectionTechnology

WWW

Collection Module

L/C Department

Factories

Export System

ERP Interface

SAP AR Interface

ElectronicBanking

PresentationInformation

L/C Info

Vehicles &Parts Data

Web-based L/C and Collection management system for easy world-wide roll-out to factories, 3rd party document providers and banks

Improved efficiency and reduced discrepancies by automating transfer of:

L/C information into corporate’s ERP system(s)

Relevant product information from the invoicing system into document preparation instructions

L/C and collection presentation information into accounts receivable system for reconciliation of incoming payments

GlobalOrdering

SAP FinancialsExport L/C

Module

Shipping

Forwarding

& InsuranceCompanies

Sample Structures and Workflows

Banks 1…ngrant global credit facilities on

group level

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Banks 1…nBanks 1…nBanks 1…n

allocate sub creditlines to entities

request guarantee issuance direct within allocated creditlines

Beneficiary Beneficiary Beneficiary

issue the guarantee

Financial Dep.

A B C

Optimized Credit Facility setup using @GlobalTrade

Setup Credit Line Limits

Setup Guarantee Template (by Bank, Buyer or Type)

Apply for Guarantee

Check Credit Limit

Agree on Guarantee Text

Guarantee Request

Select Bank

Finance Department Unit Buyer

Approve non-standard Applications

Approve above-limit Applications

Update Credit Line Utilization

Update Reductions & FeesCheck Fees

Bank

Standby LC/Guarantee Issuance Workflow

PresentBank

Pre-check

Collaborate

Setup Document Templates

Setup Master Template

Receive Advices & Amendments

Confirm with internal Units

Factory

Logistics

Sales

Factory

Insurance

Inspection

Bank

Bank

Bank

Finance Department

Bank

FreightForwarder

Sales

Logistics

Workflow Export LC

Jacob Katsman

GlobalTrade Corporation

E-mail: [email protected]

Tel: +1 416 661 8520

Mobile: +1 416 627 8520

www.globaltradecorp.com

Contact Information

shaping the future of trade services. about globaltrade corporation page 2 globaltrade corporation...

Documents

proprietary bank systems

pki agreements corporate

future of trade services

globaltrade corporation

applications service

concept of data exchange

world of trade finance

multiple banks