Responding to COVID-19 with Blockchain-Enabled Payables Finance · 2020-04-30 · New User Experience Highly Scalable Fully Digital Highly Secure. Mass onboarding of 1000+ suppliers

101 Blockchains Think Tank Webinar Series

LIVE WEBINAR

Presented by:

Responding to COVID-19 with Blockchain-Enabled Payables Finance

Chaired byEnrico CamerinelliIndustry Analyst

Daniel CottiManaging Director, Center of

Excellence, Banking & Trade,

TradeIX

Claire ThompsonExecutive Vice President,

Enterprise Partnerships at

Mastercard

Alisa DiCaprioHead of Trade and

Supply Chain at R3

LIVE WEBINAR

The webinar will commence in a few minutes




LIVE WEBINAR

Presented by:


Chaired byEnrico CamerinelliIndustry Analyst

Daniel CottiManaging Director, Center of

Excellence, Banking & Trade,

TradeIX

Claire ThompsonExecutive Vice President,

Enterprise Partnerships at

Mastercard

Alisa DiCaprioHead of Trade and

Supply Chain at R3

Webinar Topics

➢Keeping businesses, supply chains, and the economy intact requires

rapid intervention

➢ Innovative financing solutions focusing on SMEs and global supply

chains are a necessity

➢Such solutions require rapid onboarding, simple integrations and

low-cost deployments

LIVE WEBINAR101 Blockchains Think Tank Webinar Series

A few housekeeping tips

Use the Q&A feature to ask your questions

marcopolo.financemarcopolo.finance Confidential - Not for Distributionmarcopolo.financeConfidential - Not for Distribution


April 30, Thursday, Time: 12:00 pm ET | 18:00 CET | 16:00 GMT

marcopolo.financemarcopolo.finance Confidential - Not for Distributionmarcopolo.financemarcopolo.finance

How covid changed the way we talk about blockchain in trade

7

• 71% of banks report enacting COVID - 19-related measures to support customers

• Most report trying to scale up existing digital solutions, using digital hacks

• Reported solutions are clunky, not viable in long term

In a global emergency, international trade may slow but it must not stop

• All banks report 75-90% of operational staff working remotely

• Natively digital documents are critical to this flow

• Where blockchain is in place, trade flows less impacted by lack of courier service, remote staffing

Short-term digital transformation requires flexibility to scale up and down

Rapid evolution in practices around e-signatures and e-docs

• Less than 1/3 of banks are requiring paper originals during COVID - 19

• Regulators issuing directives and guidance to promote electronic documents even

where regulations do not yet support


Addressing Challenges of Covid 19 Rapid response through digital solutions

8

Acceleration through collaboration

• Leverage the combined might of our clients and partners to provide a powerful solution in a time of need

Digitally connecting businesses

• Driving economically sustainable solutions to SMEs underpinning with the safety and security of the global network and blockchain technology

Prioritizing Social responsibility

• Highly targeted and impactful initiatives, enabling money to flow to businesses that are essential to the practical combatting of the virus

Delivering liquidity to essential supply chains to stabilize

• Providing easy access to cash for critical SME suppliers


Amplifying scale, connectivity and security of global networks

9

Financial, Physical &

Informational Trade processes

Logistics, Insurance, data

providers

Bank & non bank funders

Buyers & Suppliers

Corda Distributed Ledger Technology

Business

Financiers

Third party

service

providers

• Simplified corporate interaction utilising existing ERP files

• Access to 30+ trade finance banks globally

• Digital trade information from third parties incl. shipping, logistics

• Secured and permissioned through distributed ledger technology

• Fastest global network that brings, trust, standards, security and reliability

• Effective & efficient onboarding

• Access to digital trade flows through partner Networks

• 50 million corporate, 22500 banks & billions of consumer relationships worldwide

• Multi-rail payment capability – national infrastructure provider (real-time payments, ACH, cross border, card, ATM and e-com)

Trade Instruments, corporate, banking & consumer relationships

Onboarding

Multi-Rail/Currency Payment & Rich Data

Digital

Identity

Networks

Pay

Disburse

marcopolo.financemarcopolo.finance Confidential - Not for Distributionmarcopolo.finance

The world’s largest and fastest growing distributed network for global trade and supply chains.

Marco Polo Network

Financial

Institutions

Technology

Partners

Corporates

30+

7

20+

Open and distributed network for trade

and working capital finance powered

by open Application Programming

Interfaces (APIs) and blockchain

technology.

Facilitating trade and working capital

finance solutions creating better

customer experience and seamless data

integration, while reducing costs, time

and risk.

Marco Polo enables the creation of

Trade and Working Capital Finance

applications and modules through a

collaborative co-creation model of the

members.

Successful tested by over 70 organisations.

Recognized by numerous market awards

10

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjqh9KCtJHkAhXMDewKHatiAb4QjRx6BAgBEAQ&url=https://de.wikipedia.org/wiki/Datei:Logo_Logwin.svg&psig=AOvVaw1AK4W65FlqSaB6UDfKAdSG&ust=1566389035420786

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=2ahUKEwiQrdfYrvXfAhUBMewKHbGdCLcQjRx6BAgBEAU&url=https://commons.wikimedia.org/wiki/File:Voith_logo.svg&psig=AOvVaw2rq5CA-ZC5dZvgVi0xOlSa&ust=1547833348378483


Current Payables Finance Solutions

Number of Suppliers

Sp

en

d

Tail

Although the tail include over 80%

of all suppliers….Key Challenges in Supply Chain Finance

Source: McKinsey Company

22%

16%

15%

13%

13%

9%

9%

4%

Ease of onboarding Suppliers

Support of suppliers

Ability to analyze spend and working capital

Ability to access credit capacity

Attractive pricing

Accounting Treatment

Ease of use of IT platform

Mulitple banks

48%

24%

14%

7%7% <25

25-100

100-250

250-1000

>1000

….only a small number of suppliers are part

of Supply Chain Finance programs

Source: PWC 2019

4%

21%

34%

13%

13%

13%

1%

Increased demand in emerging markets

Poor credit quality

Complaince constraints

Limited capacity to underwrite

Reduction in correspondent banking

Geopolotical risk

Other

Reasons for Rejections

Source: BNY Mellon

Ease of onboarding suppliers

Compliance constraints

Results

SME suppliers have no

access to current Supply

Chain Finance solutions

Current processes and

solutions don’t allow for

mass onboarding of

suppliers

Current Supply Chain

Finance solutions have

limited effect on reducing

the risk on supply chain

disruptions, social

responsibility, and

supporting the economy

11


What is required to support SME suppliers?

Keeping businesses, supply

chains, and the economy intact

requires rapid intervention

Pay suppliers faster while preserving your own working

capital.

Provide liquidity for suppliers to reduce risk of supply

chain disruptions.

Mitigate business continuity risk by providing early

payment options to suppliers.

Provide funding sources and additional liquidity to

suppliers.

Key Principles

• Providing easy access to cash

• Stabilize supply chain

• Social responsibility

• Highly targeted and impactful

• Collaborative

Best Solution covering

all key requirements

SME Early Pay also known as Payables Finance, Supply

Chain Finance and Reverse Factoring.

12

Keeping businesses, supply chains, and the economy intact requires rapid

intervention. For the first time, we are developing and bringing financing

solutions to market focusing on SME and global supply chains with leading

partners. Marco Polo Network

“The imperative to Save Our SMEs cannot be understated: this agenda is of

paramount importance to safeguard the current and future functioning of the

global economy and the livelihoods of billions of workers throughout the

world.” ICC COVID-19 Response


Marco Polo SME Early Pay

Supply ChainFinance

Socially Responsible

New User Experience

Highly Scalable

Fully Digital

Highly Secure

Mass onboarding of 1000+ suppliers

For new and existing Supply Chain

Finance programs

No paper-based and manual process

requirement. Digital platform including digital

agreements and signature.

Simple, fast integration to fully distributed

platform and responsive user interface.

Leveraging Corda blockchain with full auditability

and traceability capabilities with each transaction

verified using complex cryptography.

Supporting businesses that are essential to the

economy and combatting the economic effects

due to the virus, with low-cost financing options.

Integrated Identity Solutions

Digital Passport Public & Private Data

Integrated Payment Solutions

triggered by API

Leveraging the DLT Corda

network of nodes at scale

Single window engagement/on-

boarding process

Leverage the Azure cloud

environment to allow low cost,

global reach deployment of Marco

Polo Platform and Apps at scale

Leverage Accenture’s reach to

the market with their corporate

client contacts

Experienced SPV provider

with track record for Trade

Finance instruments

Distributed Trade Finance

Technology Platform and

developer of trade finance

solutions

13

First time that new technologies and services from leading partners are combined and work together to offer SME-focused Payables Finance.

Fully digital & automated

onboarding (no human touch)

Combination of Partners & Technologies

API connectivity to trade

directory for digital verification

SPV funding under multiple

options MRPA and Notes

Early payment of approved invoice,

not purchase of a receivable

Network of 30+ funders

available to provide liquidity

Alternative payment options

such as virtual cards


• Buyer uploads approved invoice

• Supplier submits funding request for approved invoice(s)

• Funder submits funding response and supplier accepts it

• Funder pays supplier the invoice amount less a discount

fee for early payment. Invoice ownership is transferred to

funder

• At maturity, buyer pays funder the full invoice amount

1

2

3

4

5

• Maintain DPO and Working Capital

• Standardize payment terms

• Reduce risk in supply chain

• Improve supplier relationships

Buyer Benefits

• A/R↓ DSO↓ Working Capital↓

• Off balance sheet, non-recourse financing

• Leverage Buyer’s strong credit rating

• Certainty of payment (forecasting)

• Visibility into payment details

Supplier Benefits

Process Steps

How does it work?

14

Marco Polo App

Node

Supplier

Corporate Platform

Node

Buyer

Funder Platform

Node

Funder

1

2

3

45

Brand-new onboarding experience

Mass and automated onboarding including

SME suppliers.

Leveraging blockchain

With Corda, retain control of your data with

transaction-level privacy.

Multiple financing options

Different funding structures

available including direct bank

funding and SPV.

Seamless connectivity

Via a single interface and fast integration

with your ERPs and suppliers.

Distributed Platform

No centralized entity and destination

platform controlling financing program.

marcopolo.financemarcopolo.finance Confidential - Not for Distributionmarcopolo.financemarcopolo.finance 15

Value propositions of Marco Polo SME Early Pay

Buyers

Higher supplier

penetration

Enhance

suppliers’ loyalty &

strengthen supply

chain

Reduce performance

& supply chain risk

by ensuring financial

health of suppliers

Maintain payment

terms & cash on

balance sheet

Multibank network

provides access to

broad funding base

(currencies &

jurisdictions)

Expand existing

Supply Chain

Finance

programs

Suppliers

Access to on-

demand early

payment, enabling

reduction in days

sales outstanding for

all suppliers

Working Capital

optimization and

improved cash flow

Access to

broader

funding

Lower implied cost

of funding for

finance raised

against strong

buyer credit rating

Funders Governments

Mass and quick

supplier onboarding

enabling cost

effective increase of

trade participants SPV structure

allows for Trade

MRPA and Capital

Markets funding

structures

Pro-active

response to

current liquidity

challenges of

SMEs

Pro-active

balance sheet

mgmt with risk

distribution

optionsShort tenors, self-

liquidating assets

through uncommitted

facilities

Ensures liquidity

injected into the

markets can reach

the businesses and

supply chains that

need it most in a

timely manner

Allows supply chains

to continue operating,

ensuring citizens

have access to the

goods and services

they need

Prevents large

numbers of

businesses from

failing, mitigating the

inevitable rise in

unemployment

Governments can

participate directly in

the programs or

support the banks

that inject liquidity


What is unique to Marco Polo SME Early Pay?

Rapid, Digital Onboarding

Quick and cost-efficient mass onboarding of suppliers through digital and highly automated workflow.

• World-class support

• Digital documentation and signature

• Supplier file upload from buyer

• Leverage Mastercard Track

Low Cost Deployments

World-class managed services that run efficiently and elastically across thousands of participants.

• Multi-tenanted nodes

• Corda Accounts

• Cloud only

• Automated

Simple, Fast Integrations

Simple, fast, and secure integrations into core and back-office systems with ability to get up and

running quickly.

• Support common translations for file formats

• User-friendly documentation• Simple file uploads/downloads from UI

• Enable basic file transfers from ERP

Integrated Payments

Seamless trade and maturity payment process with adequate remittance data to perform simple

reconciliation. • Leverage Mastercard partnership

• Payments triggered by API

• Omni-channel payment rails

• Rapid delivery of funds

16


Why Join Now?

Support SME Businesses

Introduce a working capital finance solution that helps SME

businesses with additional liquidity.

Network Effects

Encourages the collaboration for new origination channels with

other banks, new products, pilots & new data sources.

‘Active’ Member Status

Influence the direction, help drive the agenda and future strategy.

Going Digital

Supporting digital and automated processes, replacing paper-

based, manual solutions

A few housekeeping tips

Use the Q&A feature to ask your questions


Q&A

Whitepaper

Working Capital for SMEs

Fighting the Economic Effect of

COVID-19

www.marcopolo.finance

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Responding to COVID-19 with Blockchain-Enabled Payables Finance · 2020-04-30 · New User Experience Highly Scalable Fully Digital Highly Secure. Mass onboarding of 1000+ suppliers

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