How AI Optimises International Trade Finance – BNP Paribas
(6 May 2024 – France) While financial exchanges in international trade are still largely paper-heavy processes, BNP Paribas Trade Finance launched a program using artificial intelligence (AI) to streamline Trade Finance document processing and improve traceability for corporate clients of the bank.
More than three quarters of international trade volumes are seaborne with multiple risks at every stage including non-payment, non-delivery, country risks, quality and much more. The purpose of trade finance is to mitigate risks by involving banks, acting as a trusted partner between the buyer and the seller who may have diverging interests.
Paris headquartered BNP Paribas has initiated an innovative programme integrating AI and machine learning to streamline traditional processes and change the game. The programme encompasses innovative solutions to speed up data processing times, improve traceability at every stage of import-export transactions, and enhance customer autonomy. Using OCR (optical recognition) and AI, data identification and capture are automated and accelerated resulting in significantly faster and more accurate operations. Equally important, compliance checks including anti-money laundering (AML) are considerably enhanced as part of the program.
“The tools we have implemented help increase the processing speed of documentary credit operations while reducing risks of error through the manual handling of data. It’s only the beginning and we expect more exponential improvements. Another positive effect of the new program is that our teams can more than ever focus on customers and relationships with correspondent banks” commented BNP Paribas Fortis Head of Global Trade Solutions, Frédéric Zeegers.
“Vital for international trade and the global economy, Documentary Credit uses masses of documents. At BNP Paribas, almost one million printed documents relating to international transactions are processed every year. Alone, a documentary credit consists of up to 100 pages of printed, signed and stamped documents that must be processed by the BNP Paribas operations teams.”
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