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Blockchain and Digital Invoice Finance — What’s Missing?

Similar to an idea in the movie "Inception," blockchain has been imprinted on our brains as the solution for just about everything. But recently, a number of articles have taken a negative perspective on blockchain. Now I for one am never about technology for technology’s sake. But let’s not throw the baby out with the bathwater. Distributed ledger technology really started ramping up only about 36 months ago. Considering that Amazon was still only selling books online after its first two years, why does blockchain have to change the world so quickly?

4 Traps when applying Artificial Intelligence to B2B Lending

The crowdsourcing concept called the “wisdom of the crowd” is where a thousand non-experts will make better decisions than the most sophisticated experts in any field. Yet humans are subject to biases in their decision-making. These biases can bleed into the artificial intelligence algorithms we design to try to make us more efficient and effective. Read about the four that we should recognize.

Intelligent Trade Finance: The Road Ahead

Spend Matters welcomes this guest post from Biji John, product manager, trade finance, at Finastra.

The trade finance industry is undergoing a unique moment of transformation. There is a virtuous circle between how the technologies of the fourth industrial revolution will enable trade financing, and how this in turn will power the innovation and adoption of these technologies in “Industry X.0.” In our last post, we explored ways in which AI, blockchain and the Internet of Things (IoT) will transform how trade finance is done. Here we explore some of the hurdles that banks face on the road to true intelligent trade finance, and provide some practical examples of banks that have overcome these challenges and serve as prime examples of intelligent trade finance in action.

Intelligent Trade Finance: The Confluence of Blockchain and the Internet of Things

Spend Matters welcomes this guest post from Biji John, product manager, trade finance, at Finastra.

The fundamentals of trade and trade finance have not changed in centuries: it’s process heavy, with bottlenecks and disputes everywhere. Characterized by paper and manual operations, the back office is ripe for next-generation transformation. In the middle and front office there is potential for far greater automation and use of real-time data, for example in the accounts receivables process, in SME credit underwriting, loan booking, and monitoring and indeed for relationship managers (human and virtual) to surface and analyze data to gain insights and provide more data-driven recommendations to corporate clients along the financial supply chain.

Why Platforms and Source-to-Pay Networks Need Finance

More and more procurement software platforms and source-to-pay networks are receiving RFPs from clients requesting way to help improve working capital. Companies, even middle-market companies, have global supply chains. Working capital is important and could manifest itself in the form of yield management, ROI and balance sheet improvement. This is a box on the RFP that vendors need checked. But the path is not easy.

Using Information Advantages to Finance B2B Transactions

We've all heard the stories around how supply chains are digitizing. A real transformation is underway, no doubt. But transformations don’t happen overnight. Likewise, traditional forms of financing supply chains still dominate. Many new models of lending have emerged over the last few years that rely on the approved invoices and third-party money, and while some models have generated volume, these pale in comparison with total B2B transactions. This is not to say there are not failures. In fact, the innovations that have been tried and failed lead to further innovation, piggybacking off of lessons learned.