Is het nieuwe, digitale betalingsinstrument, The Bank Payment Obligation (BPO), de toekomst in de internationale handel? Marc van Maanen en Hugo Verschoren NTHR-Symposium Elektronisch Contracteren 11 april 2014 Agenda 1. Trends in het DK en e-Letters of credit 2. Uitleg van de werking van de BPO 3. The Uniform Rules for Bank Payment Obligations 2 Trends in het DK en e-Letters of credit (1) • Afname L/C’s in Noord-Noordhandel • Gedeeltelijke vervanging door open-account • Toename L/C-volume in Zuid-Zuidhandel 3 Trends in het DK en e-Letters of credit (2) • Complexiteit L/C door vele regels: – – – – – UCP600 ISBP (2007 Revision) ICC-opinies DOCDEX-beslissingen Rechterlijke uitspraken • Geen afname van aantal ‘discrepancies’ bij L/C-presentaties • Ondermijning systeem van L/C-financiering 4 Trends in het DK en e-Letters of credit (3) • Digitaliseringswensen bedrijfsleven maar geen omarming van de e-L/C • Ondanks BOLERO is gebruik van e-B/L beperkt • Amerikaanse L/C-specialist James Byrne: “The e-UCP is only one of a long line of failures in the efforts of market leaders to entice L/C users into using electronic data in lieu of paper documents.” 5 The Bank Payment Obligation The New Kid on the Block Hugo Verschoren Sr. Product Manager Trade & Working Capital Solutions Commercial Banking ING Group, Amsterdam NTHR-Symposium 2014 Amsterdam Introduction 7 Introduction • The Bank Payment Obligation is “the new kid on the block” • A new instrument in the world of Supply Chain Finance, Open Account trading and Trade Finance • Based on SWIFT’s Trade Service Utility (TSU) • Will … • Banks offer the BPO to its customers? • The BPO be a success in the market? • To be seen… • But let’s first see how it works, what it is and what it does… 8 TSU (Trade Service Utility) 9 The Trade Service Utility (TSU) • Platform developed by SWIFT • Matches data from Purchase Order with data of the shipped goods • In case of match, buyer receives a message that the goods ordered have been shipped • = invitation to pay • Access only for banks under ISO20022 standard • Corporates have access to TSU through their banks (preferably by IT platforms) • The TSU is a Transaction Matching Application and is the basis for the BPO 10 TSU Buyer Buyer’s Bank 11 Seller Transaction Matching Application 11 Seller’s Bank TSU Buyer Seller 1 Transaction Matching Application Buyer’s Bank 1 12 Purchase Order data 12 Seller’s Bank TSU Buyer Seller 1 2 2 Buyer’s Bank 2 13 Transaction Matching Application 2 Purchase Order advice 13 Seller’s Bank TSU Buyer Seller 1 3 2 Transaction Matching Application Buyer’s Bank 3 14 Accept PO data 14 2 3 2 Seller’s Bank TSU Buyer Seller 1 3 2 Buyer’s Bank Transaction Established Matching baseline Application 4 4 15 Match results 15 2 3 4 2 Seller’s Bank TSU Buyer Seller 5 1 3 2 Buyer’s Bank 4 5 16 Transaction Established Matching baseline Application 2 3 4 Shipment of goods Documents (if any) to buyer 16 2 Seller’s Bank TSU 5 Buyer Seller 1 6 2 Buyer’s Bank 4 6 17 Transaction Established Matching baseline Application 2 3 4 6 Invoice and shipping data 17 3 2 Seller’s Bank TSU 5 Buyer 1 6 7 2 Buyer’s Bank Transaction Established Matching baseline Application 4 7 7 18 Seller Match results 18 2 3 4 6 3 2 Seller’s Bank TSU 5 Buyer 1 7 6 8 2 Buyer’s Bank 4 Transaction Matching Application 7 8 19 Seller 2 3 4 6 2 Seller’s Bank Accept or reject mismatches, if any 19 3 TSU 9 5 Buyer 1 7 8 6 2 Buyer’s Bank 4 Transaction Matching Application 7 9 20 Seller 2 3 4 6 Payment (outside of TSU) 20 3 2 Seller’s Bank BPO (Bank Payment Obligation) 21 Bank Payment Obligation (BPO) • Irrevocable undertaking issued by an Obligor Bank in favour of a Recipient Bank to pay or incur a deferred payment undertaking against a succesfull data matching with an Established Baseline • Obligor Bank = Buyer’s Bank • Recipient Bank = Beneficiary = Seller’s Bank 22 Bank Payment Obligation (BPO) Buyer Obligor Bank 23 Seller Transaction Matching Application 23 Recipient Bank Bank Payment Obligation (BPO) Buyer Seller 1 Transaction Matching Application Obligor Bank 1 24 Purchase Order data + Request to issue BPO 24 Recipient Bank Bank Payment Obligation (BPO) Buyer Seller 1 2 2 Obligor Bank 2 25 Transaction Matching Application 2 Purchase Order advice with BPO option 25 Recipient Bank Bank Payment Obligation (BPO) Buyer Seller 1 3 2 Transaction Matching Application Obligor Bank 3 26 Accept PO data 26 2 3 Recipient Bank 2 Bank Payment Obligation (BPO) Buyer Seller 1 3 2 Obligor Bank Transaction Established Matching baseline Application 4 4 27 Match results 27 2 3 4 Recipient Bank 2 Bank Payment Obligation (BPO) Buyer Seller 1 3 2 Obligor Bank Transaction BPO is Established Matching baseline established Application 4 4 28 Match results 28 2 3 4 Recipient Bank 2 Bank Payment Obligation (BPO) Buyer Seller 5 1 3 2 4 Obligor Bank 5 29 Transaction BPO is Established Matching baseline established Application 2 3 4 Shipment of goods Documents (if any) to buyer 29 Recipient Bank 2 Bank Payment Obligation (BPO) 5 Buyer Seller 1 6 2 4 Obligor Bank 6 30 Transaction BPO is Established Matching baseline established Application 2 3 4 6 Invoice and shipping data 30 3 Recipient Bank 2 Bank Payment Obligation (BPO) 5 Buyer 1 6 7 2 Obligor Bank Transaction BPO is Established Matching baseline established Application 4 7 7 31 Seller Match results 31 2 3 4 6 3 Recipient Bank 2 Bank Payment Obligation (BPO) 5 Buyer 1 7 6 8 2 Obligor Bank 4 Transaction Matching Application 7 8 32 Seller 2 3 4 6 Accept or reject mismatches, if any 32 3 Recipient Bank 2 Bank Payment Obligation (BPO) 5 Buyer 1 7 8 6 2 Obligor Bank 4 7 9 33 Seller Transaction Matching Application 2 3 4 6 3 Recipient Bank 9 Settlement BPO: Payment at sight or deferred payment undertaking with payment at maturity 33 2 Bank Payment Obligation (BPO) • What is it? • A BPO is an irrevocable undertaking given by an Obligor bank (typically the buyer’s bank) to a Recipient bank (the seller’s bank) to pay a specified amount on an agreed date under the condition of a successful electronic matching of data according to an industry-wide set of rules adopted by the ICC. • BPO constitutes a legally binding, valid and enforceable payment obligation of the Obligor Bank to the Recipient Bank under the appropriate standard of law, enforceable in accordance with its terms. • BPO is a technology independent instrument based on ISO 20022 XML that can be used on any open Transaction Matching Application (TMA) such as the SWIFT Trade Service Utility platform (TSU). • BPO is neither a light letter of credit nor an electronic letter of credit nor a guarantee. 34 Contracts and Legal Framework 35 Relationship between parties in a BPO • BPO is a bank-to-bank obligation • Issuer = Obligor Bank • Beneficiary = Recipient Bank • Relationships between banks and their clients (buyer or seller): • “Blue Ocean” concept 36 Relationship between Obligor and Recipient Bank • Communication through TSU (or other TMA) as per ISO 20022 standard • Ruled by UR BPO and TSU (or other TMA) rulebook and bilateral agreements Bank-to-Bank Space 37 Relationship between banks and their clients: “Blue Ocean” concept • Obligor Bank ↔ Buyer • Legal framework • Arrangement to pay the amount due under the BPO • Possible finance arrangements Under seperate contract between Obligor Bank and Buyer Competitive Space: Banks will have to develop their own agreements and legal framework • Recipient Bank ↔ Seller • Legal framework • Arrangement how Recipient Bank (Beneficiary of BPO) will treat a BPO in its favour in the frame of a transaction of the seller to be developed seperately • “Silent Confirmation/Obligation”? • Financing of deferred payment undertaking? • Responsibility about genuiness of submitted data? Under seperate contract between Recipient Bank and Seller Competitive Space 38 Competitive Space • Banks will have to develop their own legal frameworks and agreements that rule the relationship between themselves and their customers Competitive Space Competitive Space • Communication: by preference automated front and back end systems 39 The BPO in the world of Trade 40 BPO combines elements of both worlds Buyer Data Letter of Credit Advice Seller Documents Application Documents Buyer Contract Documents Bank Payment Obligation Contract Seller Buyer Documents Seller Open Account Data Contract Documents Data LC Issuing Bank Issuance LC Advising Bank Payment Bank services based on paper document processing Obligor Bank Recipient Bank Payment Bank services based on electronic trade data exchange Array of risk, financing and processing services to address both cash management and trade finance needs 41 Buyer’s Bank Seller’s Bank Payment Bank services limited to payment processing Risk Mitigation & Financing in the Supply Chain Ordering of goods Purchase Order Production of goods Shipment of goods Transport Documents Certificates Risk Mitigation with BPO Payment & cash management Approved Invoice Invoice E-invoicing Alternative Services in Open Account Financing Options with BPO Issuance of invoice Factoring Pre-Shipment Finance Payment Initiation Approved Payables Financing Post-Shipment Finance Payment Assurance Timely Payment 42 Payment Processing Key benefits for the seller Cash flow optimization Supply Chain Finance (optional) Pre-/post shipment finance Alternative to factoring, reverse factoring etc Reduced interest costs 43 Get paid on time Improve DSO and DIO Collect receivables earlier Mitigate payment default risk of OA Optimise risk-reward transactions Improve liquidity forecasts Improve discrepancy management Easy integration with e-invoices Reduce processing effort Syndicate payment risk Key benefits for the buyer Cash flow optimization Control payment time execution Optimize credit utilization Pay key suppliers on time Reduce administrative costs Reduce investigations &disputes Outsource payables processing Supply Chain Finance (optional) Extend payment terms (DPO) Negotiate commercial terms Reduce supply default risk 44 BPO Present and Future 45 Live BPO banks Banks with live transactions + 1 corporate case study Live Banks Region Intra / Interbank transations Locations of live corporate supply chains Corporate case study Bank of China APAC Intra in China Inter CN Ito Yokado’s Chinese suppliers Bank of Tokyo Mitsubishi UFJ APAC Intra Inter CN, HK, JP, SG, TH, TW Ito Yokado Mitsubishi-Shindoh Co.,Ltd. MSM (Thailand) Vale Korea Exchange Bank APAC Inter KR OMRON Automotive Electronics Korea Co.Ltd. Standard Chartered Bank APAC EMEA Intra BE, OM, TH, AE BP Chemicals Octal PTT Polymer Marketing Co in Thailand Polymer Marketing DMCC in Dubai Siam Commercial Bank APAC Inter TH PTT Polymer Marketing Co Hua Nan Bank APAC Inter TW Importer in TW Bangkok Bank APAC Inter TH Exporter in TH 46 Banks ready for live use of BPO Banks ready to go live but with no live BPO transactions yet • ANZ • NLB (Nova Ljubljanska Banka) • Bank al Etihad (Jordan) • RBS • Barclays • RHB Bank • Commercial Bank of Dubai • Standard Bank of South Africa • Commerzbank • Deutsche Bank • Sumitomo Mitsui Banking Corporation (SMBC) • J.P. Morgan • Turkiye Is Bankasi • Kasikornbank (Thailand) • UniCredit • Maybank 47 55 Banks adopting BPO (update as at January 10th 2014) Including 15 from the Top20 Trade banks 48 The URBPO (1) • April 2013 goedkeuring ICC van de Uniform Rules for Bank Payment Obligations • URBPO regelen rechtsverhouding tussen banken en de werking van de BPO • URBPO moeten door partijen (banken) van toepassing worden verklaard 49 The URBPO (2) • BPO-Clausule in handelscontract • Art. 15 URBPO rechtskeuze voor vestigingsplaats Obligor Bank • Art. 15 (c) – geen nakoming door banken in geval van schending van “Regulatory Requirements” 50 The URBPO (3) • BPO opereert in een “Bank-to-Bank space” • Begunstigde van een BPO is Recipient Bank, niet onbetaalde verkoper • URBPO regelen slechts verhoudingen tussen banken • Verhouding tussen bank en opdrachtgever is lastgeving ex art. 7:414 BW 51 The URBPO (4) • Artt. 6 en 7 leggen autonomie-beginsel vast: “Banks deal with data and not with documents or the goods.” • Voor betalingsverplichting bank is slechts beslissend of sprake is van een Data Match • Enige uitzondering op autonomie-beginsel is fraude 52 The BPO (slot) • Toekomst BPO: “The future is unwritten” 53
© Copyright 2024 ExpyDoc
