Standard Bank Group and Deutsche Bank have announced a financial supply chain partnership pilot project using the SWIFTNet Trade Services Utility (TSU) infrastructure.
TSU is a SWIFT-based service, supported by banks globally, that provides financial institutions with an exchange of trade-related information using common messaging and set industry standards. Deutsche Bank and Standard Bank have both been active members of the TSU SWIFT user group since its inception.
The partnership enables both banks to monitor various supply chain events in order to explore ways of providing liquidity in open account trade transactions. Using TSU, Deutsche Bank and Standard Bank Group will exchange supply chain data automatically for their respective buyers and sellers.
They will leverage the TSU matching functionality to provide a basis for payment or financing services for their clients.
Two banks have successfully participated in initial testing of the TSU functionality. The pilot is planned to include live transactions for corporate clients who have agreed to participate.
Jerry Pearce, Managing Director and Global Head of Products, Standard Bank Group, says: "Standard Bank is ready for TSU and we have already handled quite a number of live transactions using this solution.
"We consider ourselves a leader in the development of supply chain management solutions, understanding our clients' needs to preserve their cash flow and maintain a healthy balance sheet. Through this solution we will provide trade finance to our clients, boosting trade flows that were affected by the global economic crisis."
Jonathan Richman, Global Product Head, Trade and Financial Supply Chain, Global Transaction Banking, Deutsche Bank, says: "We are pleased to partner with Standard Bank for this important step forward that begins to turn the promise of TSU into a reality.
"This alliance will help clients conduct international trade on open account terms, improve automation and risk management while accessing new types of finance to improve cash flow."
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