Greetings From SIBOS: Is A P2P and Financing Comet About to Hit Bank Factoring and Lending? Jason Busch - October 2, 2014 10:12 AM | Categories: Analysis, Conferences, P2P | Tags: L1, Sourcing and Categories I attended SIBOS (a large banking conference put on by SWIFT) yesterday with my Trade Financing Matters colleague David Gustin. We co-presented (debated, in fact) at a lunchtime session focused on the potential for bank disintermediation in the trade financing area. I was, of course, on the side of the good and the great – namely that a new era of capabilities brought forth by the rise of purchase-to-pay (P2P), order-to-cash (O2C), e-invoicing and supplier/business networks combined with third-party capital sources is going to render the existing bank ecosystem a dinosaur in the trade financing area. No doubt, this transition will not happen overnight. But we’re already seeing signs of it. Tungsten (see related posts, below) is out of the gate with its bank license in the UK. Taulia has developed TED and garnered committed capital to enable corporates the flexibility to fund or not fund early payment with their own balance sheet. Basware is partnering with Mastercard. And CrossFlow Payments is off to the discounting races as well with third-party funding sources and a full EDI replacement capability (which provides far greater visibility for direct spend/trade related documents than e-invoicing networks alone). And that’s just naming a few of the providers with varying degrees of liquidity on their networks today. The banks are the ones that have been left out in this world so far – with few exceptions. The great majority of executives at these firms, based on our own experience, simply “don’t know what they don’t know” and are content with growing factoring and asset based lending books of business and/or intermediated trade P&Ls (e.g., Letters of Credit). They’re not aware of the comet that is coming. Some will move quickly enough (e.g., PNC working with Tungsten), but the majority will be shackled by legacy infrastructure, cost structures and compliance requirements – not to mention blissful ignorance. The only question is when it strikes. Related ArticlesMastercard and Basware – Exploring Payments and Discounting (Late Payment Impacts)Mastercard and Basware – Exploring Payments and Discounting (A Tragic Irony)Taulia: The Stealth E-Invoicing Provider?Basware and BravoSolution: Customer/Competitive Analysis + RecommendationsTungsten and OB10: Supplier Networks - Connectivity Today, Analytics TomorrowExpert Interview: OB10, Tungsten and Supply Chain Finance Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.