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Azzana is a consulting company specialised in Corporate Treasury and Transaction Banking.
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Azzana at TXF-FIT Masterzone in Singapore

TXF Azzana

Azzana at TXF-FIT Masterzone in Singapore

TXF had organised TXF-FIT Masterzone in Singapore on May 9th ,2019  with senior coporate  treasurers , risk professionals and transaction bankers in participation

Sriram Ananthakrishan our Managing Director Sales AsiaPacific was part of the panel discussion The Age of Automation in Treasury and Trade and financing the future supply chain

Below are the highlights of some of the views expressed by him .

 

  • Digitization or process automation still remains the main thrust in Asia

There has been a transformation in Asia in the last 3 years from automation to digital innovation . However , the transformation has largely been to drive process efficiencies  for example online BGs has helped saved time by 70 pct of processing time .

We do see a strong requirement of clients in the region towards digitization or process automation but still we feel its 1-3 years for the different segments of the corporates to completely transform . Larger corporate are streamlining their legacy ERP systems to harmonize with latest technological development . In the institutional segment where 3 years back it was more standalone digital play now most of the banks or even service providers are moving into a platform play for cost efficiency . What was my business has now become partnership and alliance a mantra for success .

Other digital innovations such as Block chain are still in the infancy use case stage.

Startups are more niche but haven’t met scale except for Chinese players like  oneconnet and Lufax have proven technological and business success and are scalable in rest of Asia enabling the supply chain  

 

  • The business ecosystem is transforming making it more complex for trade  treasury &digitization

Business is also transforming where a decade ago we were discussing about food security issue the world is in a food surplus situation  same applies to energy sectors impacting margins and needing players to transform the way they do business to protect and enhance margins in addition to saving costs by bringing technology driven process efficiencies . Singapore is far ahead in terms of adoption of technology and is setting an example for the region.

But the key question still remains will the benefit reach the last mile or the last customer in the supply chain given that there is still a 1.5 trillion gap in trade financing  .

 

  • Trade digitization is not at the same speed as retail

Trade digitisation is not happening at nearly the same speed as digitisation for retail consumers such as e-commerce payments. Indeed, the 2018 ICC Global Survey on Trade Finance showed that just over 60% regional and global banks with trade finance functions see digitisation as being widespread in trade, with 30% indicating still away for success 1-2 years  about 7 pct no digitisation

 

  • Everybody still need to up their game and pace

“Every morning in Africa, a deer wakes up, it knows it must outrun the fastest lion or it will be killed. Every morning in Africa, a lion wakes up. It knows it must run faster than the slowest deer, or it will starve. It doesn’t matter whether you’re the lion or a deer-when the sun comes up, you’d better be running.”

TXF Azzana Panel