International Chamber of Commerce DSI Report Highlights
Reading the latest International Chamber of Commerce DSI report on "Key Trade Documents and Data Elements on the Frontlines" our General Manager, Bill McCabe, was struck by some commonsense insights on digitalisation processes in the trade ecosystem, especially the first point:
Digitalisation can start anywhere along the supply chain: Digital transformation does not follow a singular path, nor is there a universal “best starting point”. Organisations can begin where they have capability, or in areas where immediate value can be realised, such as automating manual tasks, or providing new and needed services to customers through digitalisation.
At Assuro Digital Services (ADS) we turn paper into bytes on our Guarantee Vault Platform. However, if you are an Applicant or a Beneficiary with a lot of existing guarantees to manage our platform can help you do that – at no cost – even if your issuing banks or insurers are not yet on the platform. We can even help you upload your existing portfolio to the platform so that you can see immediate benefits. From there it’s just a short step to issuing and receiving your bank guarantees or surety bonds digitally as the industry moves to fully digitalised end to end guarantee processes.
The report went on to say:
Implementation capabilities will likely be drawn from both internal and external sources: Organisations can choose between off-the-shelf solutions, proprietary systems, or partnerships with technology providers, depending on their specific needs and circumstances.
ADS provides an off the shelf solution that can digitally originate, store, and manage bank guarantees and surety bonds so that all parties have real time access at source. However, some customers have more complex needs so the Guarantee Vault Platform has been integrated in Europe with systems such as GTC, Trinity, SAP Partner Edge and others.
Leveraging standards is essential for long-term success: The deliberate choice of globally interoperable standards will help to achieve interoperability with business partners, reducing friction, and ensuring seamless integration across the trade ecosystem.
ADS can offer both UI & API options with data fields aligned with SWIFT.
Success metrics should be tailored to specific needs: Companies must define success based on their unique goals, capabilities, and challenges. It may not always be possible in the first instance to discern a strict economic or commercial gain but quantifying the benefits will help multiple stakeholders inside the organisation to understand and support the benefits.
There must be several hundred thousand paper bank guarantees and surety bonds in the market today. Even if going fully digital today it could take several years for outstanding guarantees to be replaced as old ones roll off and new ones are issued. At ADS we have started the journey, recognising that even the longest and most difficult ventures have a starting point.
Initial challenges are outweighed by long-term benefits: While digitalisation may involve significant initial challenges, the long-term benefits, including operational efficiency and cost savings, outweigh these hurdles.
The long-term benefits are significant. A PwC report estimates significant cost savings between 35% to 70%, can be achieved by removing the paper process, digitalising the end-to-end guarantee lifecycle, and efficiently managing your entire portfolio on the Guarantee Vault platform.
To view the PWC report, click here: Digital Vault Savings.
Benefits can come in unexpected ways: Digitalisation can yield unexpected benefits, such as increased employee engagement, customer stickiness, or new opportunities for innovation, which should not be underestimated.
When talking to one large issuing bank we discovered that they are also a beneficiary on multiple bank guarantees. While we started our first conversation on how we could help them issue digitally that has now also branched out into another conversation about how ADS can help them manage the guarantees for which they are a beneficiary.
Iterative development and continuous learning will increase the gains over time: Organisations should adopt an approach that prioritises continuous learning, iteration, and fast feedback cycles. Thus, a phased approach to digitalisation could help the organisation take advantage of its newly acquired capabilities.
So true! All parties in the ecosystem will need to take those first steps. As we speak to businesses we are learning more about their pain points and seeing more innovative ways in which the Guarantee Vault Platform can help them manage their business. Learning is a two-way street!
Reach out today to find out how the Guarantee Vault can help transform your business.
Read the full report here: Key Trade Documents and Data Elements on the Frontlines by International Chamber of Commerce DSI.
