What exactly can I do using TRADEASSETS?
TRADEASSETS can help you conduct your entire primary and secondary distribution process on the internet, allow you to maintain a database of counterparties, do your sale transactions online and conversely, bid for assets to buy. Blockchain enables a secure, bilateral communication process with counterparties against specific transactions. You can handle both primary and secondary transactions on TRADEASSETS, because you are essentially matching risk appetite and pricing on the platform with multiple parties.
How will I benefit using TRADEASSETS?
The purpose of TRADEASSETS is to make your life easier, its automation and functionality will reduce time and cost and enable you to optimize risk and increase revenues. You can continue to maintain your bilateral communication with special counterparts through the platform in addition to connecting with a larger universe of institutions. The increased reach and 24X7 connectivity will help you earn better spreads when you sell, to book more deals when you buy, in either case translating into significant financial gains.
I buy and sell assets to earn revenues and manage risk. Why should I pay TRADEASSETS to deal with my counterparts when I can continue to do this directly?
It is your prerogative to continue to do things the same way, and we are certain that you have an efficient process. However, TRADEASSETS does not take away any efficiency. It adds to it. In the world of digitization, another reason to join a platform like TRADEASSETS is to add efficiency in the deal-making process and in the end, earn more in revenues for your institution, even after any platform costs.
Will I have to make any system or process changes on my side?
No. You only need internet access. No software implementation or system change is needed. The users of TRADEASSETS will not have to integrate their systems into our platform at all because it is an e-Marketplace for banks where sellers and buyers post deals and transact without any operational changes on their part.
The main reason we buy and sell assets is for relationship purposes. Why would I go into an ecosystem that disrupts my strategic, bilateral partnerships ?
There will be no disruption to your bilateral relationships. TRADEASSETS will give you full flexibility to choose who views your assets posted for sale and to communicate securely and bilaterally with any chosen counterparty. It will, in fact, make your bilateral partnerships much more efficient and valuable, adding useful, automated information management tools.
I am not comfortable putting my transaction details on to a third party platform. How will I know that my data is secure?
We are using the latest Blockchain technology, which is the most secure protocol available today. Also, please note that you will not conduct trade finance operations through our platform, which you would mostly conduct using SWIFT.
You are building an ecosystem for banks. What use is TRADEASSETS unless all my existing counterparts are on the platform?
It will not happen overnight but you can expect all your counterparts to come in very shortly. In fact, if you have a good experience with TRADEASSETS, you could encourage your counterparties to come on to the platform. The most important benefit here is that you will have the opportunity to connect with many more institutions than you normally would.
Since TRADEASSETS is mainly a pricing platform, I will still need to maintain KYC/legal documentation on the other parties. How is my work reduced?
We cannot substitute the requirement for you to maintain credit limits, bilateral agreements and due diligence on your counterparties. This is an important regulatory requirement for all institutions which cannot be outsourced. However, TRADEASSETS will make the daily process of deal-making more efficient and profitable. It will also help you manage these relationship data points better.
I am not comfortable trading my assets on an open platform. I sometimes prefer some deals to be visible to a select few only.
The system lets you choose who views your assets.
What is your pricing model? How much do I have to pay to use TRADEASSETS?
We have not finalized the pricing model but it will be reasonable. You will use the product only if the derived incremental value is greater than the cost.
I understand secondary asset distribution but how does TRADEASSETS facilitate primary issuance?
Apart from secondary market sales, TRADEASSETS can be issued for primary origination of risk distribution. You cannot issue LCs through it but you can price risk. For instance, if a Bank in Bangladesh wishes to get a letter of credit confirmed, they can use our platform to find an institution with the risk appetite to bid for it.
There have been many mediocre attempts across the globe at solving this problem. Why is that and how do we know your platform will succeed?
Our platform is simple. Platforms that attempt to integrate multiple parties and processes in a long vertical integration chain have faced entry barriers because of the low inertia of the clients to intermediate. Our model focuses on one segment (banks), one product (trade finance risk exchange) and one aspect (auction – buying/selling of risk) and leaves complex aspects like fund settlement out of scope. We will focus on a smaller initial client market, specialist beta tester clients, the largest industry group (GTR) as media partners and experienced sales people globally.
How do I know that the system will need my needs specifically?
Please ask us for a demo or better still, join our beta testing group and shape your requirements into the platform directly.