FINTECHS COLLABORATING – CORIOLIS TECHNOLOGIES AND INTIX COMBINE THEIR CAPABILITIES AS “THE FUTURE OF TRADE IS DATA” by André Casterman, ITFA Board Member and Chair ITFA Fintech Committee and CMO at INTIX and Dr. Rebecca Harding, CEO, Coriolis Technologies

The market challenge: understanding global trade tensions and flows

Never has trade been a greater focus of global attention. Its role as a driver of economic growth is increasingly being usurped by its strategic role in furthering national agendas. Until very recently trade was seen as a benign mechanism for promoting global economic growth. Today, trade is often conflated with national interests through populist, adversarial rhetoric and a zero-sum mind-set. This “I win, you lose” approach to trade threatens to bring down the institutional structures that the world has relied upon for both its economic and military security in the post-war period. In short, trade has become weaponised.

Collecting and collating data has historically proved difficult because of the multitude of data types to consider and because each bank has different ways of recording flows, the taxonomies differ and the time frames are not necessarily aligned. However recent technologies make it easier to handle heterogeneous data sets and to deliver trade insights.

INTIX and Coriolis Technologies combine specialised domain expertise and fintech value propositions

Two main challenges need to be overcome in order to help banks keep a pulse on the trade finance market:

(1) the continuous collection of transaction data from both internal archives and from production processing systems along with anonymisation and aggregation;

(2) the production of insights by combining analytics with non-transaction data sources such as political risks and market behaviours, usually made available by external sources.

In order to feed the machine learning-based trade analytics offered by Coriolis MultiLateral, access to transaction data from banks’ internal systems is a must. This is where INTIX acts as a data capture technology with no impact on back-office systems. Whether the bank requires granular transaction details or aggregated data analytics, the data management technology offered by INTIX makes it possible to capture the required transaction details in batch or in real time and feed it to MultiLateral for further processing.

Coriolis MultiLateral then analyses that aggregated data using machine learning techniques to provide material and timely insights into trade and trade finance flows as well political, credit and financial risk and company behaviours across their supply chains. Coriolis MultiLateral acts as a data aggregator for the trade finance sector. The data processed by Coriolis MultiLateral delivers the global macro and economic and political risk data essential to trade finance. It combines it with unique transactional trade finance data, company behavioural data, company credit data to give an end-to-end picture of values, volumes, risks and benchmark performance for investors, banks, credit insurance, corporates, and even governments.

The below picture outlines the respective value propositions and how they are combined:

By integrating data from various sources such as internal systems as well as external sources (e.g., EuroStat, OECB, WTO, United Nations, Government data), Coriolis MultiLateral assists banks’ trade finance teams in keeping a pulse on the market and identifying business development opportunities at global level. The technology allows data and analytics to be connected in unique ways to derive a clear picture of what is happening in the world now. It allows trade originators to understand precisely where the risks and the opportunities are around the world in politics, in economics and in reputation.

Coriolis MultiLateral’s approach to data aggregation is that it assimilates disparate data sources into one clear signal which delivers the needed insights. By updating its analysis with continuous data feeds operated by INTIX, trade originators benefit from up-to-date analysis.

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