MitsuiSumitomoBank and MizuhoBank have agreed to invest in TradeWaltz. This follows on from Mitsubishi UFJ Bank’s initial investment, and in response, TradeWaltz Co., Ltd. has formed a new financial working group with the three banks to fully digitize trade operations.

In the financial working group, Japan’s three megabanks and TradeWaltz will work together to reduce paper-based processes and achieve seamless transactions through the digital platform “TradeWaltz”.

They will work to formulate specific function development requirements for the full digitization of documentary trade settlement, including letter of credit settlement, with a view to release in fiscal year 2014.

This initiative is expected to lead to the standardization of transaction data and business processes between shippers and banks, and to improved efficiency and transparency of the entire transaction.

TradeWaltz will enable shippers to centrally manage information related to their trade operations in electronic data by developing and providing the trade information sharing platform “TradeWaltz”. This is expected to reduce the workload of trade operations by an average of 44%.
Meanwhile, letter of credit payments, which are part of trade transactions, still require a lot of manual and paper-based processes, resulting in issues such as transaction delays, increased costs, and frequent human error, creating a need for digitization and efficiency.
To solve these issues, Japan’s three megabanks and TradeWaltz have formed a financial working group and decided to cooperate with the aim of completely digitizing the trade payment process.

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