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Bank testing begins on essDOCS BPO application

Paperless trade firm essDOCS has announced that several banks have commenced testing its CargoDocs Transaction Matching Application (Cmatch). The solution enables banks to continue offering two-corner bank payment obligations (BPOs) - alongside digital trade instruments such as four-corner bank payment undertakings (BPUs) - by replacing the soon-to-be-discontinued SWIFT Trade Services Utility (TSU).

The initial release will ensure banks can continue offering uniform rules BPO (URBPO)-based trade finance solutions to their corporate customers. The solution also aligns with both the International Chamber of Commerce's (ICC’s) upcoming uniform rules for digital trade (URDT) and blockchain platforms. 

Cmatch will be rolled out to more than 20 bank branches across four countries, commencing with MUFG and UniCredit. Testing will also involve various other European, North American, African and Middle Eastern banks.

In 2020, the solution will be extended to provide a four-corner bank payment undertaking (BPU) solution, aimed to work in conjunction with the URDT, along with additional functionality to facilitate end-to-end digital trade finance processes covering application, compliance, processing (matching) and payment. 

"Presently, the market is focusing on new technologies such as DLT, and we at MUFG are also joining several major blockchain projects as we look to enhance our digital trade offerings in the medium term," said Daisuke Kamai, director and head of eTrade Product, Transaction Banking Division at MUFG Bank. "We are also looking into digital solutions for the short term, and we believe BPO is one such service that banks can provide right now. BPO is a proven service which provides value to our clients, and we anticipate that essDOCS will develop a new platform which enables us to continue providing such value.”

"We had a long partnership with SWIFT on its TSU solution and are delighted to take up the mantle by offering Cmatch," commented Alexander Goulandris, co-CEO of essDOCS. "URBPO is the only ICC approved digital trade ruleset accepted by regulators, and will be for several years until URDT takes over, meaning that Cmatch offers the only ICC governed digital trade finance solution today. We see Cmatch as enabling paperless trade finance, through adopting banks and third-party platforms.” 

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