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Bank of Shanghai Goes Live with Supply Chain Finance Solution

April 2011. Bank of Shanghai have gone live with their Supply Chain Finance (SCF) system, which was developed by leading trade finance solutions vendor China Systems to provide a back-office solution to the bank’s SCF product offerings.

The SCF Solution implemented in Bank of Shanghai is a comprehensive SCF processing platform, supporting both Supplier Centric and Buyer Centric models for pre-shipment to post-shipment financing. The solution has been designed to handle most of the financing requirements within the Supply Chain process. These include:

• Export Factoring – both Single-Factor and Two-Factor;
• Invoice Discounting;
• Accounts Receivable Finance Under Credit Insurance – for both Export and Domestic;
• Accounts Receivable Finance – Selling Mode, Collateral Mode;
• Advanced Payment Finance – Delivery Mode, Collateral Mode, Payment Mode; and
• Commodity Finance.

The SCF System is integrated with China Systems’ Central Limits (LMTS) and Loan Processing (eLoans) Systems, together with the bank’s existing DDA, and TEMENOS T24 Core Banking System utilizing an SOA framework.

To further streamline the processing of SCF transactions, the system is also equipped with integration to China SAFE, Factoring EDI, CRMS, Commodity Price Evaluation, Insurance Company and Warehouse.

Within an impressive eight-month period employing strict quality control and project management, the development team was able to build the system from initiation and went live with the different SCF modules successfully.

Bank of Shanghai have deployed the SCF solution in their head office and 15 branches countrywide, proudly announcing that the new SCF system is one of the leading deployments with this functionality in China.

This successful full implementation of SCF automation aims to connect core suppliers and buyers with better means of financing, which provides financing within the full Supply Chain process to cover core enterprises, distributors and agents in the Physical Supply Chain. Different financing options are available to cater to each party’s needs.

By using China Systems’ SCF Solution, Bank of Shanghai enable their customers in the buying or supplying role to enhance their purchasing/distribution power and create better relationships across the complete spectrum of the supply chain. Utilising the SCF functionality, buyers are able to support their Suppliers by ensuring they have access to alternative and cheaper sources of funding and expediting the cash conversion cycle. In return, the buyers are able to negotiate better pricing and improve their working capital. On the supply side, Supplier financing assists the distribution network and the supplier-buyer network in working capital.

About Bank of Shanghai

As a joint-stock commercial bank set up on Dec. 29, 1995, the Bank of Shanghai features a two-level operating structure within one legal entity, with the paid-up capital booked at RMB 2.6 billion, comprising government-owned shares and shares held by corporations and by numerous individuals.

By taking advantage of its unique features as a local joint-stock commercial bank, Bank of Shanghai has reaped great economic and social benefits from its prudent management and operational excellence.

In Sep. 1999 and Dec. 2001, Bank of Shanghai received equity investments from International Finance Corporation (a member of the World Bank Group), Hong Kong and Shanghai Banking Corporation, and Hong Kong-based Shanghai Commercial Bank, representing a significant step closer towards a modern commercial bank aligned with international standards.

For more information, visit www.bankofshanghai.com.

About China Systems

With offices throughout Europe, North America, Asia, and the Middle East, China Systems is today's largest trade services solutions vendor in the world. Eximbills, a world-renowned back office trade finance system and China Systems' flagship product, is used by more than 150 customers in more than 75 countries worldwide.

For more information, visit www.chinasystems.com.