In response to Basel regulations, larger banks have tightened their lending standards, opening up an opportunity for asset managers to fill the funding gap.
With more asset managers focused on SMEs and emerging markets, this helps expand access for underserved segments. Having an increased presence of asset managers also increases overall liquidity and capacity in the trade finance space.
Today’s asset managers need resiliency and scalability. And without the proper resources, it’s difficult for asset managers to scale their business. In order to get what’s required to stay competitive and grow, asset managers are embracing the digital tides, turning to advanced trade finance software.
Technology is increasingly playing a critical role in transforming and modernizing trade finance in a myriad of ways:
- Eliminating the sole reliance on paper documents
- Lowering operational costs
- Automating time-consuming manual processes
- Decreasing the risk of human error
- Enhancing transparency for all parties
- Speeding up transaction times
- Lowering rates of fraud
When it comes to digital trade finance solutions, LiquidX leads the industry, bundling the entire ecosystem into a singular platform. Our system employs cutting-edge technology to optimize front, middle- and back-office functionality, alleviating the efficiency pain points created by cumbersome, paper-heavy workflows.
LiquidX’s solutions give asset managers who are entering trade finance––as well as those who are well-established––the ability to scale and remain resilient in uncertain times. Here’s a deep look at how:
Improved Data Management for Better Insights
LiquidX’s TradeHub solution is the first complete real-time dashboard for all your positions and transactions. With its comprehensive dashboard and reporting, you get insights into money flow changes. You can aggregate data across various investment programs and platforms, regardless of the origination source, unlocking operational efficiencies and growth potential.
With TradeHub, asset managers can track data at both granular and macro levels. You can assess current and project future exposure based on trading patterns to gain a full picture of where they are and should be before transacting. This gives all stakeholders greater transparency and the ability to make timely, data-driven decisions. Asset managers can also set up feeds and reporting tailored to your specific needs for unprecedented insights into portfolios. Recent studies have found that asset managers have identified a reliance on data and analytics as the top trend in asset management over the next three to five years.
In asset management, something that’s always been critical is risk management. By providing a single, immutable record of all data, TradeHub makes it possible for asset managers to track and manage risk in real-time. This empowers asset managers to identify potential issues immediately, rather than having to wait, as was necessary before digitization.
Automation for Enhanced Efficiency
To achieve greater cost control and save time for higher level work, asset managers are increasingly outsourcing back-office operations. Outsourcing allows asset managers to avoid managing multiple disparate processes and eliminates the expense of additional teams.
LiquidX’s TradeOps is the first and only complete solution to outsource your back-office trade finance functions. TradeOps is powered by AI and machine learning automation to eliminate manual work functions, reducing the risk of human error and increasing efficiency.
In partnership with Broadridge, TradeOps delivers a turnkey solution connecting your entire ecosystem to put actionable, accurate data at your fingertips. Broadridge and LiquidX’s partnership gives users the best of both worlds, combining operational expertise with industry-changing technology.
Another function that has been revolutionized by automation is reconciliation. LiquidX’s InMatch––part of TradeOps––is our advanced automated reconciliation engine. Our digitization technology transforms invoices and remittances, turning paper, PDF or Excel documents into data that delivers upstream and downstream visibility to optimize the working capital life cycle.
InMatch predicts the timing of cash flows, detects and automates customer behaviors, and identifies potential errors, increasing the auto-match rate to up to +95%. On average, invoice processing can take up to two weeks without automation.
PwC reports that 90% of asset managers already use some form of AI within the organization.
Choosing the Right Solutions
Staying competitive and poised for growth can be difficult in a complex and ever-changing landscape. Empowered with cutting-edge tools, asset managers can streamline workflows, optimizing the entire trading life cycle.
To learn more about LiquidX’s solutions and how they’re driving the future of trade finance, request a demo today.
