22 April 2018
Enrico Camerinelli

Enrico Camerinelli

Enrico Camerinelli - Aite Group

65Posts 543,168Views 65Comments
Finextra community

Financial Supply Chain

In the world of international trade, the process of exchanging payments, information and documents between buyers, sellers, banks, and other involved parties is becoming increasingly important for financial institutions. This community aims at presenting views and innovative ideas related to this financial supply chain space.

New Credit Scoring Models Ahead

21 December 2017  |  20476 views  |  0

Banks will profile corporate credit risk blending financial indicators with supply chain performance metrics.

This point represents the hinge that will connect corporate supply chain process data with innovative credit risk models for banks: Banks will capture and analyze events in the physical supply chain to generate a more profound and realistic representation of a company’s risk profile. This goes well beyond the set of performance indicators that a bank’s credit scoring office currently uses to analyze that same company’s financial statements.

I predict that banks will get inspiration—and feel competitive pressure—from business-to-business marketplaces (e.g., Amazon, Alibaba, SAP Ariba). These marketplaces already integrate the physical and the financial supply chains of the companies in the network, detecting events that trigger the need for financial support: A purchase order triggers the need for pre-shipment finance; an issued invoice triggers the need for reverse factoring; a shipment leaving the port triggers the need for trade finance instruments. Hence, these marketplaces are already able to anticipate the financial needs of their corporate network partners. A clear example comes from the concept of a Bank of Amazon that could offer online financial services.

So What? Banks have little option but to become “supply chain banks”: financial institutions that aim to provide financial support to groups of companies that belong to a common supply chain. The risk will be distributed across the group and will be transferred from the anchor to all participating trading companies. Data capture and analysis of the operational performance of the supply chain network’s constituents will represent the collateral for a supply chain bank.

TagsWholesale bankingInnovation

Comments: (0)

Comment on this story (membership required)

Latest posts from Enrico

Banks, supply chains, and blockchain

18 April 2018  |  4035 views  |  0 comments | recomends Recommends 1 TagsBlockchainWholesale bankingGroupFuturistic Banking

What’s Blocking Supply Chain Blockchains?

17 March 2018  |  4905 views  |  0 comments | recomends Recommends 0 TagsBlockchainInnovationGroupInnovation in Financial Services

Blockchain in The Supply Chain Use Cases: Proof of Quality

18 February 2018  |  5481 views  |  0 comments | recomends Recommends 0 TagsBlockchainInnovationGroupInnovation in Financial Services

Blockchain in The Supply Chain Use Cases: Inventory Finance

11 February 2018  |  5765 views  |  0 comments | recomends Recommends 0 TagsBlockchainInnovationGroupFinancial Supply Chain

Enrico's profile

job title sr. analyst
location Boston
member since 2009
Summary profile See full profile »
Senior Analyst for Corporate Banking, based in Europe. Current research focuses on Global Transaction Banking, Supply Chain Finance and Working Capital Management.

Enrico's expertise

Member since 2008
59 posts65 comments
What Enrico reads

Who's commenting on Enrico's posts