How Smart Collateral Management and IoT are Transforming Trade Financing

01.06.23 03:40 AM By Daniel

Historically, the world of commodity trade financing has struggled to balance the need for speed, security, and transparency. Independent third parties, known as collateral managers, have long been responsible for safeguarding financed cargo in warehouses. Despite these traditional precautions, fraud continues to be a persistent issue causing significant losses for lenders. This is where the advent of Smart Collateral Management systems is driving a new era of secure trade financing.

Unveiling the Digital Twin Warehouse

At the crux of these challenges lies a fundamental issue: the inability to verify the real-time status of financed cargo held in the warehouse. The process is fraught with human errors and susceptibility to fraud. This is where Ascent Solutions' pioneering technology - the Digital Twin Warehouse - steps in to transform the landscape of commodity trade financing.

Our Digital Twin Warehouse solution, designed with meticulous detail, provides a precise, real-time inventory status, fundamentally altering how warehouse operators and collateral managers account for inventory. This transformative technology eliminates risks of human mis-inputs, leveraging advanced computer vision techniques to dynamically track inventory and provide real-time inventory management.

By integrating strategically placed cameras on warehouse ceilings with our proprietary positioning and depth-sensing algorithms, we can generate 3D real-time coordinates of every object within the warehouse. This level of detail and accuracy is unprecedented in the realm of trade finance innovation.

Enhancing Transparency, Boosting Trust

The integration of our Smart Collateral Management system and trade financing solutions enables lenders to validate the financed collateral pre and post financing, thereby significantly reducing fraud risks. Our solution immediately alerts users if the underlying collateral for any warehouse receipt leaves its designated storage location, promoting timely intervention.

Imagine a future where lenders, cargo owners, and warehouse operators all have real-time views of the inventory status within any warehouse. Our Digital Twin Warehouse is the first step towards creating this reality, fostering unparalleled trust and transparency in the commodity and trade financing industries.

iTrust's Role in Trade Financing

The complexity of today's supply chains often results in a fog of documents and finances obscuring the physical movements and actual operations. This is where iTrust dissipates this fog. By uniting the documentary, financial, and operational aspects of a trade financing transaction, iTrust offers a clear, transparent view of your supply chain's journey.

Incorporating FinTech in trade finance, iTrust brings about unmatched visibility and trust, empowering stakeholders to confidently navigate the trading ecosystem. This breakthrough is setting a new standard in trade finance digitisation, spotlighting the power of IoT in trade financing, and positioning us firmly at the forefront of risk management in trade financing.

The advent of our smart solutions is not just an innovation; it's a revolution in trade financing, heralding an era of increased trust and security in this crucial aspect of global commerce.