Fremont, CA: Trade finance facilitates the global movement of goods. It is supported by the simultaneous exchange and review of documents ranging from letters of credit to bills of lading. While some parts of the supply chain have adopted digitalization, many stakeholders continue to rely on paper-based documentation.
Banks will need to bridge the technological divide and devise solutions that reach all stakeholders, particularly those in less digitally-enabled areas, as they embark on the journey toward trade finance digitalization. AI-powered automation could be the solution.
Automation for Help
If paper-based documentation remains in the supply chain, automation complements digitalization and an alternative solution. Artificial intelligence (AI) is used in this case to interpret scanned documents and compare them to a set of pre-defined rules and regulations. This frees operatives from the time-consuming and mundane task of manually reading the documents, allowing them to instead focus on the anomalies identified by AI – far more productive use of their time and one that vastly increases efficiency.
Aside from cost savings and time savings, automation of document checking strengthens the review process. Machine learning (ML) supplements AI by automatically updating the software by recording and applying the resolutions enacted by the operatives. It can also keep up with changing compliance and legal requirements.
The rote and repetitive work is all automated, whether the bank receives documents digitally or as physical copies. As a consequence, operatives can better manage fluctuations in workload. Moreover, digitalization allows for more flexible working arrangements, such as working from home (a lifeline during the pandemic), while also freeing employees to do more engaging and skilled work.
