About the summit
The 4th Supply Chain Financing Summit was held in Singapore on March 9-10, 2016. It gathered 170 participants from 14 countries around the world to explore a range of topical themes, including developments in SCF on a global basis, as well as specifically in Asia, touching on the impact of FinTech and the notable recent progress around digitization of trade and trade financing. Event was hosted by the ICC Academy and supported by the ICC Banking Commission along with other notable partners. Organizers of the event are exceptionally grateful for support of IE Singapore and Singapore Business federation and Singapore at whole for a warm reception of the first local edition of the Summit.
The Summit featured the official launch of the “Standard Definitions for Techniques of Supply Chain Finance”, a global, multi-association initiative facilitated by the ICC, aimed at fostering clarity and a more common understanding of Supply Chain Finance techniques across industry groups, markets and stakeholder groups with the express intent of advocating for adoption of the Definitions. Moreover, the Summit addressed regulatory and compliance issues, and included practical “case study” observations on the implementation of Supply Chain Finance Programs and the SWIFT/ICC Bank Payment Obligation.
During 2 days and 10 panel discussions, guests of the Summit discussed some of the most challenging developments and promising opportunities in the international trade environment and in supply chain management and finance. The Summit was opened by Ms. Low Yen Ling, Parliamentary Secretary, Ministry of Education & Ministry of Trade and Industry; Mayor, South West CDC, who highlighted the importance of trade financing to the successful conduct of trade, noted the need and opportunity represented by the global trade finance gap, and uniquely, brought together her two portfolios to highlight the importance of training, education and professional certification to the business of trade finance.
It was noted that Asia is expected to drive the growth of supply chain finance in the years to come and commodity trading is set to become more Asia-centric. Moreover, two-thirds of all the commodities that are produced, consumed and traded globally have a direct link to the Asia Pacific Region. With the world’s major supply chains increasingly anchored in Asia, these trends have a very strong hand in shaping the development of regional supply chain finance.
Teo Siong Seng, Chairman of ICC Singapore, Chairman of the Singapore Business Federation and Managing Director of Pacific International Lines stressed the importance of the key themes of the Summit to all local and foreign-owned businesses in Singapore. International trading has long been recognised as an important contributor to the growth and evolution of Singapore and the significant multiplier effect back to the rest of the economy. The significance of trade to the Singaporean economy is undeniable, with the value of annual trade in goods and services reaching about 3,5 times the country’s GDP.
Supply chain financing, it was observed, connects financial transactions to value and as it moves through the supply chain it also potentially encourages collaboration between the buyers and the sellers to optimise working capital for both parties. Supply chain finance has been growing rapidly, although without standardised definitions that can promote consistency in risk and capital treatment of the same product in different countries. Therefore release of the “Standard Definitions for Techniques of Supply Chain Finance” was of increasing importance. Definitions set out in this document build upon several excellent initiatives and documents aiming to develop terminology related to this fast-growing, high-value but still fairly nascent form of financing, which applies equally in support of domestic and international supply chains.
Release of the document in Singapore was very symbolic due to the fact that Asia is one of the youngest supply chain finance markets and is expected to see the largest and fastest growth. The Asian market is also very likely to have unique needs, when it comes to supply chain finance. Coupled together with existing strength as a business, trade and financial hub, there is clear scope for Singapore to develop into a hub for supply chain financing activities.
More than 50 speakers during two days discussed many challenges ahead. Fintech panel members agreed that opportunity can be seen in two ways – through collaboration or competition, however, the majority agreed that significant and transformational results can best be achieved through cooperation. It was noted that the BPO is at or close to a tipping point in terms of its potential and in terms of moving toward a critical mass of market adoption, with positive impact anticipated for SMEs, however it is still new and there’s a lack of expertise in the field.
Guests also discussed the role of ECAs and private credit insurers in facilitating supply chain and international trade finance. The role of the private credit insurers is growing rapidly, especially in Asia, therefore speakers not only discussed the state of ECAs and private risk mitigation, but also shared their experience on risk mitigation models and evolution of market partnerships between various players.
Among the second day’s highlights were panels and discussions on the internationalisation of the RMB, SCF innovations and the global regulatory environment along with a demonstration of the ICC Academy’s online courses and the newly deployed Learning Management System, or LMS.
RMB internationalisation has been a sensational story since 2009 when China first allowed RMB as a settlement currency for cross-border trade. Seven years later, much has changed and evolved, therefore speakers gave their observations of the market adoption of the RMB and considered whether the growth of RMB as a trade settlement currency has been a reflection of market demand for trade settlement between offshore RMB hubs in China and other dynamics in play.
During the last panel discussion speakers were challenged with the question of whether we regulate innovation or is innovation what we create to manage the regulatory expectations facing the banking and financial sector today. It was stressed that there is a significant geographical difference in the way supply chain finance is implemented, and that is one of the main challenges the market has, therefore regulation, and strategies for assuring uniform (or at least, consistent) application, interpretation and compliance are crucial to the evolution of SCF and the trade it enables. Nevertheless, just like with other topics discussed during the Summit, regulation also offers a lot of opportunities even as it presents significant challenges to the industry.
Delegates and speakers explored the challenge related to next-generation staffing and the development of trade finance-related competencies, given the expected long-term growth in demand for trade and supply chain finance capacity, and the need to quickly address this reality was highlighted. As a global shortage of expertise in trade and supply chain finance expertise takes shape, the ICC Academy will be at the forefront of efforts to attract, train and retain the next generation of experts supporting global trade through traditional trade finance and SCF.
Leveraging on strengths as Asia’s leading trade and financial hub, Singapore has the ability to shape the development of regional supply chain financing. During both days it was highlighted that having an annual Supply Chain Financing Summit is crucial to set the stage for exchange of ideas, creating new solutions that cater to the evolving needs of the Asia landscape, and ICC Academy will continue to play a central role in this area.
Full summary of the event is available here.
Explore event’s photos and get an insight of the Supply Chain Financing Summit 2016.
Agenda
08:00 AM– 09:00 AM
Registration and morning coffee
- Thierry Sénéchal, Senior Director and CoFounder of the ICC Academy
- Alexander R. Malaket, President, OPUS Advisory Services International Inc., Co-Chair, Academic Committee, Trade Finance Faculty, ICC Academy
- Low Yen Ling, Parliamentary Secretary, Ministry of Education & Ministry of Trade and Industry; Mayor, South West CDC
- Teo Siong Seng, Chairman of ICC Singapore, Chairman of Singapore Business Federation & Managing Director of Pacific International Lines
The panel will explore the evolution of Supply Chain Finance (SCF) in Asia and globally, considering the needs and expectations of clients and the evolving propositions of banks and SCF providers. Panel members will discuss the main drivers behind the fast-paced, global growth of SCF; the potential of SCF in meeting the global need for working capital and liquidity, including among small and medium-sized enterprises and in emerging markets; the challenges in deploying SCF programs around the world; market disruption in SCF and the financing of international trade.
Moderator: Thierry Sénéchal, Senior Director Founder of the ICC Academy
Speakers
- Sabine Oudart, Relationship Manager, Supply Chain Finance Program, Asian Development Bank
- Jose Lopez-Mateos, Regional Head Solutions Structuring, Asia Pacific, Global Trade and Receivables Finance, HSBC
- Vijay Vashist, Global Head of Trade and Supply Chain Finance and Trade Asset Management, DBS
- Vincent O’Brien, Chair of the International Chamber of Commerce’s Education and Market Intelligence Group
- Doina Buruiana, Project Coordinator, Banking Commission, International Chamber of Commerce
10:30 AM– 11:00 AM
Networking & coffee break
The panel will discuss SCF with a focus on the unique needs of the Asian market, recognizing that many of the world’s major supply chains are anchored in the region, and that market demands expectations here will shape the global evolution of SCF in the coming decade. Panel members will consider the state of SCF in various parts of Asia today; unique regional needs and practices in financing supply chains; SCF in the context of developing and emerging markets in Asia; the role of SCF in providing liquidity to high-growth markets in the region
Moderator: Alexander R. Malaket, President, OPUS Advisory Services International Inc., Co-Chair, Academic Committee, Trade Finance Faculty, ICC Academy
Speakers:
- Rakshith Kundha, Managing Director, Trade and Supply Chain Finance, South & Southeast Asia, Bank of America Merrill Lynch
- Nicole Wong, Executive Director, Head of Supply Chain Finance, DBS (TBC)
- Shivkumar Seerapu, Regional Head, Trade & Supply Chain, Asia Pacific, Deutsche Bank
- Chetan Talwar, Head of Corporate Trade Advisory and Solution Delivery, Asia Pacific, J.P. Morgan Treasury Services
- Greg Trotter, Head of Cash Management, OCBC
The panel will take a client-centric view of Supply Chain Finance, considering the needs and expectations of large corporates as well as small and medium-sized enterprises with a particular focus on Asia. Panel members will discuss the current and evolving needs of large corporates in managing global supply chains, and in deploying SCF solutions and programs; the importance of SMEs and strategic suppliers, and their needs related to cashflow and financing; the views of clients about SCF providers and disruptors, bank and non-bank; adoption and usage levels of SCF programs across APAC
Moderator: Dr John Vong, Professor, LKY School of Public Policy, National University of Singapore and Senior Consultant at UNDP
Speakers:
- Joost van den Hondel, Initiator and Program Manager, Betaalme.nu
- Anand Pande, Founder of The Growth Paradigm Partnership
- Damien Dugauquier, Commerical Manager, Corporates, Asia Pacific, SWIFT
- Brian Edmondson, Global Head, Trade and Working Capital Finance, MISYS
12:30 PM– 02:00 PM
Lunch
The ICC Banking Commission has been facilitating an 18-month long, cross-industry initiative together with partners from around the world, to develop a set of terminology and nomenclature around Supply Chain Finance. The panel will share the mandate and terms of reference of the Supply Chain Finance Forum; the rationale for and expected benefits of a standard set of global definitions; details of the drafting process and the proposed structure and techniques; next steps in advocating for global adoption
Moderator: Alexander R. Malaket, President, OPUS Advisory Services International Inc., Co-Chair, Academic Committee, Trade Finance Faculty, ICC Academy
Speakers:
- Charles Bryant, Senior Adviser to the Euro Banking Association
- Angela Koll, Vice President, Specialist Trade & Supply Chain Finance, Commerzbank AG Frankfurt
- Vivek Gupta, Global Head of Supply Chain Finance, Australia and New Zealand Banking Group Limited
- Vinod Madhavan, Head, Transactional Products and Services, South Africa, Standard Bank
- Christian Hausherr, Global Transaction Banking, Product Management Trade Finance, Supply Chain Finance EMEA, Deutsche Bank
The panel will explore latest developments and coming transformation in the world of financial sector-related technology, from platforms to processes, evolution to revolution. Panel members will consider the transforming role of Fintech in finance; changing expectations from end-clients and the impact on SCF providers and their technology partners; the disruptive power of fintech and the staying power of bank-based SCF propositions; the pace of disruptive change in the next five years
Moderator: Foo Boon Ping, Managing Editor, The Asian Banker
Speakers:
- Billy Quinn, Managing Director, Codix
- Bevan Davies, Vice President for the Asia Pacific Region, essDOCS
- Roberto Capodieci, Founder and CEO, Open Trade Docs
- Vincent O’Brien, Chair of the International Chamber of Commerce’s Education and Market Intelligence Group
03:45 PM– 04:15 PM
Networking & Coffee Break
Digitisation is reshaping the landscape of finance, and SCF is no exception. The SWIFT/ICC Bank Payment Obligation, or BPO, is one of the promising propositions in this space, but market adoption needs to accelerate. The panel will discuss the key issues faced by those championing the digitization of trade and financing documentation, with specific focus on the BPO; the main benefits to be gained from market adoption of the BPO, including the advantages of early adoption for clients and SCF providers; the opportunity to leverage digitisation and frameworks like the BPO to drive economic inclusion and market development; the key remaining challenges to full commercialization of the BPO
Moderator: Boon-Hiong Chan, Director, Head of Market Advocacy APAC, MENA at Deutsche Bank AG Singapore
Speakers:
- John Bugeja, Co-Founder and Managing Director, Trade Advisory Network
- Angela Koll, Vice President, Specialist Trade and Supply Chain Finance, Commerzbank AG Frankfurt
- Anna Jones, Head of Supply Chain Finance, Transaction Banking, Standard Chartered
- Hari Janakiraman, Global Head of Core Trade Products, Transaction Banking, ANZ
- Daisuke Kamai, Head of e-Trade Product, Product & Solution Department, Transaction Banking Division, Bank of Tokyo-Mitsubishi UFJ
The role of ECAs and private insurers in the financing of trade and global supply chains has been demonstrated by the global financial crisis, and the value proposition of these key enablers of trade is gaining traction in emerging and developing markets, including across Asia. Panel members will discuss the state of ECA and private sector risk mitigation and financing, in particular whether global capacity is adequate to sustain trade volumes; innovative models in ECA finance and risk mitigation; the evolution of market partnerships between ECAs, insurers, banks, multilateral and non-banks in Supply Chain Finance; the policy context impacting the mandates of ECAs, and advocacy imperatives in supporting SCF
Moderator: Anand Pande, Founder, The Growth Paradigm Partnership
Speakers:
- Fabien Conderanne, CEO at Coface Singapore and Head of Structured Trade Credit and Political Risk Insurance for Asia Pacific
- Stephen Capon, Regional Manager, Asia-Pacific, Political Risks & Credit, Chubb
- Serene Soo, Divisional Director of Credit, Political & Security Risks – Asia, Jardine Lloyd Thompson
- Sarah Gulston, Divisional Director at Arthur J. Gallagher
06:00 PM– 08:00 PM
Cocktail Reception
Welcome from the Chair of the second day Kah Chye Tan, CEO and Founder of Tin Hill Capital and Member of the Board, ICC Academy
Doina Buruiana, Project Coordinator, Banking Commission, International Chamber of Commerce
As a global shortage of expertise in trade and supply chain finance takes shape, the ICC Academy will be at the forefront of efforts to attract, train and retain the next generation of experts supporting global trade through SCF. This panel will highlight professional certification, delivery partnerships and the importance of competency and expertise in SCF.
Moderator: Alexander R. Malaket, President, OPUS Advisory Services International Inc., Co-Chair, Academic Committee, Trade Finance Faculty, ICC Academy
Speakers:
- Dr S. Viswanathan, Professor of Operations Management at the Nanyang Business School, Nanyang Technological University, Singapore
- Kah Chye Tan, CEO and Founder of Tin Hill Capital and Member of the Board, ICC Academy
- Vijey Ananda, Commercial Director, ICC Academy
“Live” Demo of the ICC Academy LMS and On-line Training Courses. Presented by Thomas Paris, Head of Production, ICC Academy
The growth of the RMB as a currency of cross-border payments and trade has been nothing short of spectacular over a very short period of time, with increasing volumes of trade denominated in RMB and numerous leading financial centers vying to become RMB centers. The panel will explore the market response to increasing regional usage of RMB; the impact of economic and capital markets volatility in China, on the internationalisation of the RMB; the pace of adoption versus market needs and expectations, including the evolution of the RMB hubs; the advantages and limitations of RMB-denominated trade
Moderator: Swee Siong Lee, Cash Management Product Head, Global Transaction Banking, OCBC
Speakers:
- Ben Chan, Head of RMB Solutions, UOB
- George Nast, Global Head of Sales and Client Management, Transaction Banking, Standard Chartered
- Carmen Chan, Regional Head, Financial Supply Chain, Asia Pacific, Deutsche Bank
11:15 AM– 11:45 AM
Networking & coffee break
Regulation is a topic of increasing importance in the financing of international trade and supply chains, for banks, and inevitably, for non-bank providers of SCF. The impact of regulation cannot be overstated, and the absence of globally consistent, aligned regulatory frameworks is a significant market distortion. Panelists will discuss the state of the global regulatory environment, with particular focus on Asia and its impact on the evolution of SCF; regulatory arbitrage, and the challenge for global institutions in ensuring compliance across jurisdictions; the international public policy environment around financial sector regulation; regulatory impact on the availability of affordable SCF solutions for small business and emerging markets, and the imperative to strike a balance between prudential regulation and the effective conduct of legitimate trade
Moderator: Kah Chye Tan, CEO and Founder of Tin Hill Capital and Member of the Board, ICC Academy
Speakers:
- Holger Frank, Head of Financial Institutions Group (FIG) and Global Transaction Banking (GTB) in Asia Pacific Region, UniCredit
- Ojas Doshi, The Chief Operating Officer of the Rhodium Group
- Christina Li, Senior Vice President, Head of Trade, Hong Kong & Strategic Trade Solutions – Asia Pacific, International Trade Services, Wells Fargo & Company
- Bernard Wee, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore
01:00 PM– 02:30 PM
Lunch
The link between the physical supply chain and the financial supply chain has been recognized as strategically important. Recent developments in technology and commercial practice introduce the notion of an information supply chain. This case study will explore the evolution of global supply chains and the role of SCF in sustaining these critical corridors of commerce.
Presented by Hari Janakiraman, Global Head of Core Trade Products, Transaction Banking, ANZ and Rahul Saxena, CFA, Head of Products, Trade, Asia, ANZ
03:30 PM– 04:00 PM
Networking & Coffee Break
04:00 PM– 05:00 PM
Case Study 3 | Presented by MISYS
Concluding remarks by:
- Kah Chye Tan, CEO and Founder of Tin Hill Capital and Member of the Board, ICC Academy
- Alexander R. Malaket, President, OPUS Advisory Services International Inc., Co-Chair, Academic Committee, Trade Finance Faculty, ICC Academy
Download the Summits agenda.
Explore biographies to find more about the speakers, who were involved in each session.
Organizer
The ICC Academy promotes the highest global standards of excellence in professional education – providing a wide range of certification programmes that are recognized worldwide. In line with ICC’s mission to promote international trade and investment, the ICC Academy helps professionals develop the skills required to address today’s business challenges.