1.The Trade Finance solution developed by Fintra and in the process of enhancements has got the following major features:
a.Unitary banking – where transactions are processed and completed at each branch independently
b.Global banking – where transactions are processed in Hub and Spoke Model viz., branches are connected to a or few Central Processing Centres.As per latest trends, this model is mostly preferred by banks due to
i.Requirement for limited domain specialists
ii.Centralized operations which help manage statutory obligations effectively
iii.Reduction of resources
iv.Advantages of rolling out new products quickly
c.External integrations – integration with External Credit Agencies, Courier Agencies and Statutory systems
d.Ability to integrate with Blockchain seamlessly
2.Fintra is also having a Factoring solution. Fintra has already bagged a contract for implementing this product in UAE at Dubai.
The marketing strategy of Fintra is as follows:
Direct marketing of the product with various banks by way of giving Demo directly and exploring options as a start up.Being a Start up, this Model is not likely to gain much traction for the next one year.
Marketing along with other Integrators.We would like to point out that the strength of Fintra does not lie in getting big deals in the beginning.Rather, our strength is the quality of our product. It is the quality and versatility of the product that sets us apart from the others in the Industry.Our USP lies in the following:
ØMeeting the niche requirements of the banks
ØAbility for quick TAT and helping clients change products suitably as per market demands and statutory guidelines
ØConfigurability of products even in respect of major areas such as Accounting Entries, SWIFT, GST implications without major change in coding
ØQuality, Speed and Efficiency of the company
ØAdvanced technology – our products are developed in most modern languages such as Node JS, Angular, Bootstrap etc. which require lesser time and effort in coding compared with the traditional languages such as JAVA, COBOL etc.
ØOur Technology will be leading for the next 10-20 years in the market.
uIssue, amend and reverse Letter of Credit
uRegister documents, acceptances
uRetirement of documents under Letter of Credit & Collections
uOpen Accounts and Avalization
uInward Bill Discounting
uAdvising Export Letter of Credit including Confirmation/Transfer of Letter of Credit
uRegister/send Documentary & Non-documentary collections
uNegotiation/Discounting of Export LC & Non-LC bills
uRealization of collection/negotiation/discounted bills
uFactoring and Reverse Factoring (Anchor)
Inland Bills and Guarantees:
uInland LC Issue & Retirement of Bills
uNon-LC collection bills
uInland LC Advising, Collections & Negotiations
uInland Non-LC Bill Discounting
uIssue, amend outward Bank Guarantees & Advise inward Bank Guarantees
uRegister Claim and Settle/reject Claim
uLegal suspension of Guarantee
uEnables Branch Banking as well as centralised processing for Trade Finance transactions
uFacility to create diverse and varied products: Multiple variants of products within each Module
uSix-eye principle (Maker, Reviewer, Authorizer)
uAbility to define Global, Regional and Client-specific features:
ØPeriodical upgrades are given without disturbing this architecture.
uBank configurable Swift messages and Fees
ØRESTful business services delivered through high performance Node JS
ØAngular based SPA (Single Page Architecture)
ØOnline and Realtime solution deployable for high availability
ØChoice of databases:
ØPopular RDBMSs: Oracle or MySQL or
ØIndustry leading NoSQL MongoDB
uDynamic search based on multiple criteria such as Reference ID, Name, Address together
uConfiguration of Swift messages without dependence on vendor including new messages that may be introduced by Swift
uMulti-currency Accounting entries posting to Core Banking
uOnline Real Time Interface with Core Banking system of the bank for limit validation, lien-marking, accounting entries and Master Data fetching
uConfiguration of Trade Finance Fees for up to 5 fees in a transaction
uDeferral of charges and later realizations
uStorage and retrieval of Master Data e.g., Customer, Bank etc.
uDocument Masters, enabling pre-configuration of document name, description etc.
uContent Masters, enabling users to store content and retrieve during transaction processing
uDocument upload, enabling up to 20 jpg/pdf documents upload
uAuto-display of System identified discrepancies plus facility to manually add more discrepancies
Existing Solutions for Trade Finance:
üTrade Finance transactions as part of Core Banking Solutions: Banks use their existing Core Banking software to meet their trade needs, which cannot withstand the data intensive requirements of a typical Trade Finance transaction.This results in non-capture of critical additional data elements and information which affects the statutory and reporting requirements of the bank.
üIn-house Applications: Some Banks have developed and use their own in—house solutions to meet their requirements. These do not meet their comprehensive requirements.In most of these cases, document management and reporting requirements are not met.
üExclusive third-party solutions: Some Banks have sourced exclusive Trade Finance solutions. While these Solutions address the above-mentioned two aspects, the rigidity of must such products to meet the exclusive bank specif and region specific requirements, as also the reluctance of the Solution owner to customize the product leaves the banks wanting in their quest to achieve their desired output and quality.
üLack of Customer-centric features: More than 75-80% of the Solutions on Trade Finance do not offer customer front-end to their clients.Those which have customer front-end also do not have a comprehensive solution for all the needs of the customer.
FINTRA’s Trade Finance solution is a panacea for all these limitations. It takes care of exhaustive capture of data elements, statutory requirements, customer front-end, storage of documents and transmission of document images from customer to Bank and vice-versa.It is flexible enough to enable addition of bank’s new requirements by way of bank-specific customizations as also mask bank-specific product features from rest of the Industry.
Areas where FINTRA addresses the challenges of the current day environment in TRADE FINANCE:
Area of activity
Challenges faced by bank
Receiving customer requirements
The customer requirements are manually received by way of physical documents
Customer can initiate transaction online and submit data to bank on the GO by uploading scanned images.Physical documents can follow, but Bank need not hold processing till they are received.
After receiving documents, lot of data input is required
The data submitted by customer is available for vetting and processing.
Manual compliance of bank guidelines for exception processing
Exception processing can be flagged and appropriate alerts generated
Manually handled to meet requirements of each authority
Fintra enables pre-configured reports which can be transferred to the Statutory authority through identified software
Consumes lot of time
Fintra enables repetition of similar transactions to save for the users thus avoiding monotony.
Bank needs to position at least one Trade Finance resource per active branch
FINTRA software can enable customers as well as branches to input basic data which does not call for expertise and rest of the processing can be done at the dedicated Trade Finance cell of the bank.
Trade Finance know-how
All the resources need to be abreast with knowledge required
Subject know-how can be restricted to limited few who actually process the transactions.
Lack of automation and need for repetitive activities
Enables automation by which both the bank and customers save on input and ensures greater communication and transparency
Need to send specific emails/sms
Emails/sms/Advices can be linked to transaction processing and triggered automatically
Cannot be tracked scientifically
TAT for specific transactions can be defined and missed TATs/SLAs can be tracked. Besides email/sms alerts can be sent
Authorization matrix cannot be defined and the standard maker-checker process need to be followed
Enables transaction-specific configuration of Authorization Matrix which gives greater degree of security to the bank and client.
SWIFT transactions need to be individually triggered which may lead to frauds and delays
SWIFT messages are auto-triggered from the Application.Incoming messages can also be processed by transfer of data from SWIFT to Trade Finance.