Digitalisation of trade finance has entered a global strategic alliance with J.P. Morgan’s Trade and Working Capital group. The alliance leverages a digital solution, ClearTrade, to solve both the challenges trade finance operations face today and tomorrow.

The ClearTrade platform streamlines the onerous due diligence processing associated with trade finance transactions and the multitude of physical documents that are still prevalent in the industry today.

Trade finance is an industry going through a digital transformation. The ClearTrade solution offers a change for banks to ensure they can continue to operate in this evolving landscape plagued with a significantly increasing cost base.

Over the past year, ClearTrade has been integrated into J.P. Morgan’s Trade Processing System and is now live supporting transactions in the APAC region, with a global rollout planned over the coming quarters. Through this initiative, J.P. Morgan will be able to further leverage the digitising of documents using powerful image processing solutions with the ability to extract, validate and accurately classify unstructured data.

This level of digitisation allows for:

  • Smart interpretation of data and documents to automate letter of credit document examination.
  • Contextual and configurable rules engine to supplement existing uniform customs and practice for documentary credits and international standard banking practice rules.
  • Identification of trade-based money laundering and sanctions red flags.
  • Seamless integration into any existing trade finance back-office platforms.

Cleareye firmly believes that the ClearTrade solution has the capability to increase trade finance operations productivity by up to 70 per cent. Through the automated examination of thousands of trade presentations, including both industry common and non-standard document types, the solution has demonstrated up to nine times increase in trade velocity, significant reduction in document checking errors, greater than 85 per cent accuracy standards and up to 80 per cent reduction in E2E processing time.

Stuart Roberts, global head of trade and working capital for J.P. Morgan says: “Digitising trade finance documentation has the ability to provide real benefits to J.P. Morgan and our clients.

“Banks have grappled to solve the puzzle of paper and manual data entry in this business for many years and our alliance with Cleareye is taking meaningful steps towards solving the problem. The ClearTrade platform also helps us to accelerate and future-proof our clients’ business while reinvesting savings into enhancing controls and risk management.”

Mariya George, CEO and co-founder for Cleareye, states: “J.P. Morgan maintains a gold standard for digital innovation while ensuring regulatory needs are met, and we are very excited about the ClearTrade implementation and go-live. This also reinforces the strategic alliance between our firms and the vision to digitise trade operations for banks across the globe.”

  • Francis Bignell

    Francis is a journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

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