FCIreverse - Simplicity and No Minimum Volume Requirements
02 Apr 2019
Over the past weeks, we have published a series of articles explaining the reasons to join FCIreverse and the range of benefits for financial institutions, buyers and suppliers – In this final piece, we will be focusing on simplicity and no minimum volume requirements.
Effective supplier onboarding is key to the success of a supply chain finance programme. Half of the respondents to PwC’s 2017 SCF Barometer said that the supplier onboarding process was a key success factor for a supply chain finance programme.
But all too often, the process is fraught with complexity. Time-consuming supplier agreements and KYC procedures can prove off-putting for time-strapped suppliers, which can ultimately limit the number of suppliers which sign up. In practice, many programmes include only a small number of suppliers: almost half include 25 or fewer suppliers, according to the PwC report.
As a result, simplicity is a major goal for the FCIreverse platform. By leveraging Demica’s integrated and configurable supplier onboarding tools, FCIreverse provides a streamlined onboarding experience for suppliers, resulting in a number of benefits:
• Simple and fast processes. From supplier agreements to gathering KYC and AML documentation, FCIreverse offers fast, straightforward processes which are much easier to navigate than email, telephone or postal communication.
• Digital onboarding tools. Suppliers can upload KYC documentation and sign documents digitally, streamlining the onboarding process.
• Configurable onboarding tool. Demica’s onboarding tool can be configured to suit local members’ KYC requirements and document signing procedures. FCI members and buyers can also monitor the status of the onboarding process in real-time secure environment.
By making it as easy as possible for suppliers to sign up, FCIreverse overcomes many of the obstacles that can otherwise hinder supplier adoption – thereby boosting the overall success of the programme.
No minimum volume requirements
When a funder is looking to set up a supply chain finance business, one potential obstacle is the need for minimum volumes.
In order to make their supply chain finance businesses viable, funders may need to achieve a certain level of business in light of the fees charged by third-party platforms. Banks may therefore be reluctant to proceed if they do not have certainty about their likely volumes or return on investment.
At the same time, the prospect of a lengthy internal implementation process can make it hard to justify setting up a programme – particularly if volumes are not expected to be high.
With FCIreverse, volumes and implementation times need not be a concern:
• No minimum volumes. For funders using FCIreverse, there are no minimum volume requirements. This means that banks can easily set up a supply chain finance programme or use FCIreverse to complement their existing programmes.
• Easy to integrate. Likewise, the standard integration model means it’s simple to deploy FCIreverse. In fact, funders can deploy FCIreverse in as little as three to five weeks.
That means funders can be ready to set up supply chain finance programme on the platform quickly and easily – regardless how large or small the proposed programme will be.
From minimising legal fees and streamlining the onboarding process to generating revenue, it’s clear that joining FCIreverse brings numerous benefits. As well as taking advantage of the many benefits associated with operating a supply chain finance business, FCI members have the opportunity to provide cross-border programmes without the usual costs and efforts – whether they wish to set up a new business, or build on their existing offering.