Trade Finance Current-state pain points Establish payment terms Deliver goods Settle on terms Order goods Initiate Receipt Provide invoice shipment notification Importer 1 2 Exporter Exporter Inspection Importer Import bank Financial company agreement ials Verified Product 7 Initiate can goods Verified Product payment 3 4 Fin goods shipped 8 Financials Financials 5 6 Payment Customs Freight Customs Import bank Correspondent bank Export bank Country A Country B Correspondent bank Export bank Current-state pain points 1 Manual contract creation: the import bank 4 Manual AML review: the export bank must 7 Multiple versions of the truth: manuallyreviews the financial agreement provided manually conduct AML checks using the financials as financials are sent from one by the importer and sends financials to the provided by the import bank entity to another, significant correspondent bank 5 Multiple platforms: since each party across version control challenges exist 2 Invoice factoring: exporters use invoices to achieve countries operates on different platforms, as changes are made short-term financing from multiple banks, adding miscommunication is common and the propensity 8 Delayed payment: multiple additional risk in the event the delivery of goods for fraud is high intermediaries must verify that fails 6 Duplicative bills of lading: bills of lading are funds have been delivered to 3 Delayed timeline: theshipment of goods is financed multiple times due to the inability of the importer as agreed prior to delayed due to multiple checks by intermediaries banks to verify their authenticity the disbursement of funds to and numerous communication points the exporting bank WORLD ECONOMIC FORUM | 2016 78