Joon Kim, head of global trade processing products for BNY Mellon Treasury Services, participated in the Trade Corridors session at Sibos on Wednesday, October 14. Kim surveyed the changes taking place in trade corridors and trade finance, and stressed the importance for banks of adding value to the services they provide in the international trade space by strengthening the link between their trade-related offerings and cash and liquidity management.
Commenting on the topic, Kim says: "Importers and exporters confront on a daily basis the challenges of the working capital cycle as products move along the chain from raw material to production, storage, shipping and delivery to consumers. Banks that provide various trade services need to be as resourceful and creative as their trade customers when it comes to adding value to services we provide.
"Banks that can move beyond specific products and provide holistic solutions that reflect an understanding the customer's value chain, as well as trends in the trade space (e.g., traditional documentary LCs transitioning to open account), will be best positioned to identify additional trade-related opportunities," adds Kim.
"As with many other aspects of contemporary banking, integration, simplification and transparency – with a big assist from technology – will be important contributors to delivering enhanced value. In addition, increased scrutiny is being required in the current regulatory landscape, and business costs are increasing. In light of all these changes, it is critical for banks to review their respective situations and choose the right correspondent bank. That's why we're so invested in payment and trade processing innovations. It's also why we're so strongly committed to our partnerships with our bank clients. Many of them rely on us to provide payment services as part of our trade-related outsourcing solutions, and we want to help them succeed in the new global banking environment," says Kim.