What are the benefits of the we.trade platform for my business?
Key benefits of we.trade for companies include:
As a buyer, we.trade replaces the need for pre-payments or letters-of-credit, with bank secured payments via an easy-to-use digital platform
As a seller, we.trade mitigates the risk of non-payment by a buyer
we.trade provides traders with easy access to financing, logistics, and in the future, insurance services
we.trade may be used by traders where a buyer’s credit insurance limit has been reached
we.trade provides traders with a single digital platform for end-to-end tracking of a trade deal
we.trade eliminates the potential for cyber fraud associated with attempts by fraudsters to change the bank account number where buyers should make payments – as bank account details are held on we.trade’s secure platform, and verified by the seller’s bank
we.trade allows traders to trade with counterparties that are new to them – as all companies using we.trade are KYC’ed by their bank
What banks support we.trade?
We.trade is supported by 16 banks across 15 countries, as outlined on our homepage.
How are physical documents that are associated with a transaction checked ?
Physical documents are not checked. we.trade works with data rather than paper documents. Payments are triggered based on events.
What events can trigger a payment?
Triggers include: - Trade terms agreed - Invoice sent by seller - Invoice accepted by buyer - Goods delivered confirmed by seller - Goods delivered confirmed by buyer - Goods delivered confirmed by transport API
How does we.trade help to mitigate my payment risks?
Using we.trade, payments are triggered automatically as soon as the agreed settlement conditions, as set out in the smart contract between buyer and seller, are met – and sufficient liquidity is available to make the payment. This is known as Auto-Settlement. In addition, buyers can optionally instruct their bank to provide a payment guarantee, known as a Bank Payment Undertaking (BPU), to the seller, where the bank agrees to transfer a predetermined amount to the seller as soon as the agreed conditions have been met. A BPU constitutes an irrevocable and absolute obligation on the buyer’s bank.
What other risks can be mitigated with we.trade?
we.trade mitigates risks associated with cyber fraud. For example, using the we.trade platform each trader manages their own bank account number, and every new or modified bank account number needs to be approved on the we.trade platform by each trader’s bank - eliminating any potential for fraud. For example, fraud associated with attempts by fraudsters to change invoice bank account numbers using phishing or hacking.
How does we.trade help to improve my cashflow / liquidity?
Using we.trade, a seller, as beneficiary under a BPU, having received such BPU from the buyers bank, may then request from its bank BPU Financing, which allows the seller to use that BPU to obtain financing.
In addition, using Invoice Financing on we.trade, a seller may request financing from its bank, based on an invoice that the buyer has accepted via the we.trade platform. The financed amount will include a discount to the invoiced amount.
How does the Auto-Settlement product work?
With Auto-Settlement, the buyer’s bank will automatically process payments on behalf of the buyer to a customer that is a seller, following satisfaction of the settlement conditions for the smart contract (see below for explanation of a smart contract). The settlement conditions are the triggering events that need to have occurred for the seller and the buyer to fulfil their respective obligations under that transaction. An example of a settlement condition may be “Invoice sent by seller” and/or “Goods delivered confirmed by buyer”. Multiple settlement conditions may be applied to each trade.
How does the Bank Payment Undertaking (BPU) product work?
A buyers bank will issue a BPU upon the request of its customer. The BPU is issued in favour of the seller and constitutes an irrevocable and absolute undertaking by the buyers bank to make a payment directly to the seller, following the satisfaction of the settlement conditions defined in the smart contract.
How does the BPU Financing product work?
This product may be offered by a seller’s bank. To access BPU Financing, the Seller, as beneficiary under a BPU, must have received such BPU from the buyers bank. The seller may then request from its bank BPU Financing, which allows the seller to use that BPU to obtain financing from its own bank. The seller must effect an assignment of the rights in respect of the BPU such that there is a transfer of the rights to receive payment under the BPU from the seller to the seller’s bank on the we.trade platform, so that the seller’s bank then has the right to receive payment directly from the buyer’s bank once the relevant settlement conditions specified in the smart contract have been met.
How does the Invoice Financing product work?
This product may be offered by a seller’s bank. The seller will request finance from its bank, based on an invoice that the buyer has accepted via the we.trade platform. The financed amount will include a discount to the invoiced amount. The seller’s bank then has a right to recover the relevant amount that it has advanced to the seller by debiting an amount equal to the invoiced amount on the seller’s bank account, and having full recourse to the seller. No assignment or transfer of the seller’s rights in respect of the invoice is required through the we.trade platform (although the seller’s bank may have the right to require such assignment or transfer of receivables in accordance with the specific terms and conditions of their customer agreement outside the we.trade platform).
What type of technology is used in the we.trade platform?
The we.trade platform is built on the latest version of the IBM Blockchain Platform using Hyperledger Fabric as the underlying blockchain technology.
Why is blockchain technology used by we.trade?
For the first time, competing banks and other services providers are collaborating to deliver an easier and more efficient end-to-end trading experience for buyers and sellers. Blockchain technology brings enhanced security and fraud prevention, addressing privacy and confidentially concerns by only allowing participants to view and access only what they are meant to view and access. Blockchain eliminates the risks of a single point of trust, whilst also removing the single point of failure. When a transaction is created on blockchain, it cannot be altered – often referred as the immutability of data.
What data is uploaded to blockchain?
we.trade leverages a feature in Hyperledger Fabric called “Channels”. Each channel represents a private blockchain for which blocks and transactions are only transmitted to those peers who are a member of that channel. Any information uploaded to a channel is only present on authorized peers, and authorized peers only store the information from the channels they are members of.
Information about a trade - which is shared between a buyer, a seller, and their respective banks - is uploaded to a channel of which only buyer and seller bank nodes are members. Only these bank nodes have access to the information. This includes information about the companies buying and selling (such as company name and delivery address), information about what is sold, for which amount, and which services are procured.
Anonymous track & trace status data is uploaded to a channel of which all banks are members.Concerning the trade information, it may be noted as follows: - Personal data is never stored on the blockchain, only information about the legal entities engaging in trade. - For some specific data associated with a trade, such as document attachments, only a reference is stored on-chain.
What data is not uploaded to blockchain?
Personal data is never stored on the blockchain. Documents attached for the trade counterparty are not stored on the blockchain.
What is KYC?
Know your customer (KYC) is the process of a business identifying and verifying the identity of its clients. The term is also used to refer to the bank and anti-money laundering regulations which governs these activities.
What security systems are used for the information that is uploaded to the cloud?
All systems storing bank or consortium data are dedicated to the consortium, or to an individual bank.
These systems encrypt their data at file-system level. Sometimes this is supplemented with sharing across geographical locations, requiring compromise of multiple physical servers to reconstruct information, sometimes the data is stored in virtual machines employing hardware-supported encrypted disks and encrypted memory. All this is to ensure that the correct credentials are required to access these. The credentials are likewise managed in secure systems, which audit access, so only authorized users ae able to access system components.
Files uploaded as part of trade information are scanned for malware infection.
What are smart contracts?
Smart contracts are computer programs that execute predefined actions when certain conditions within the platform are met. Smart contracts allow the ledger state to be modified. They can facilitate the exchange and transfer of anything of value.
What are the benefits of the we.trade platform for my bank?
Key benefits of we.trade for banks include:
we.trade provides banks with new revenue streams through new financing products, with the ability to offer banking services to clients who would traditionally utilise open account trading, whilst also providing an alternative to letters-of-credit
we.trade results in reduced costs for banks, providing a single digital platform, and the requirements for paper eliminated
With the elimination of paper, we.trade facilitates bank employee remote working (e.g. working-from-home) – critical where remote working becomes a necessity
we.trade provides banks with access to analytics and customer insights in order to inform their commercial activities
we.trade provides banks and their customers with faster trade cycles, with enhanced decision making speed
we.trade provides a solution for bank clients to eliminate the potential for cyber fraud associated with attempts by fraudsters to change the bank account number where buyers should make payments – as bank account details are held on we.trade’s secure platform, and verified by the seller’s bank
we.trade banks onboard their customers to we.trade, maintaining the one-to-one relationship between each bank and their clients
we.trade allows bank clients to trade with counterparties that are new to them – as all companies using we.trade are KYC’ed by their bank
What banks support we.trade?
we.trade is supported by 16 banks across 15 countries, as outlined on our homepage.
Do my business clients, and the businesses they are trading with, both have to be clients of one of the we.trade member banks in order to use we.trade?
Currently yes, both businesses must be clients of a we.trade member bank.
What events can trigger a payment?
Triggers include: - Trade terms agreed - Invoice sent by seller - Invoice accepted by buyer - Goods delivered confirmed by seller - Goods delivered confirmed by buyer - Goods delivered confirmed by transport API
How does we.trade help to mitigate a company’s payment risks?
Using we.trade, payments are triggered automatically as soon as the agreed settlement conditions, as set out in the smart contract between buyer and seller, are met – and sufficient liquidity is available to make the payment. This is known as Auto-Settlement. In addition, buyers can optionally instruct their bank to provide a payment guarantee, known as a Bank Payment Undertaking (BPU), to the seller, where the bank agrees to transfer a predetermined amount to the seller as soon as the agreed conditions have been met. A BPU constitutes an irrevocable and absolute obligation on the buyer’s bank.
What other risks can be mitigated with we.trade?
we.trade mitigates risks associated with cyber fraud. For example, using the we.trade platform each trader manages their own bank account number, and every new or modified bank account number needs to be approved on the we.trade platform by each trader’s bank - eliminating any potential for fraud. For example, fraud associated with attempts by fraudsters to change invoice bank account numbers using phishing or hacking.
How does we.trade help to improve a company’s cashflow / liquidity?
Using we.trade, a seller, as beneficiary under a BPU, having received such BPU from the buyers bank, may then request from its bank BPU Financing, which allows the seller to use that BPU to obtain financing.
In addition, using Invoice Financing on we.trade, a seller may request financing from its bank, based on an invoice that the buyer has accepted via the we.trade platform. The financed amount will include a discount to the invoiced amount.
How are physical documents that are associated with a transaction checked?
Physical documents are not checked. we.trade works with data rather than paper documents. Payments are triggered based on events.
How does the Auto-Settlement product work?
With Auto-Settlement, the buyer’s bank will automatically process payments on behalf of the buyer to a customer that is a seller, following satisfaction of the settlement conditions for the smart contract (see below for explanation of a smart contract). The settlement conditions are the triggering events that need to have occurred for the seller and the buyer to fulfil their respective obligations under that transaction. An example of a settlement condition may be “Invoice sent by seller” and/or “Goods delivered confirmed by buyer”. Multiple settlement conditions may be applied to each trade
How does the Bank Payment Undertaking (BPU) product work?
A buyers bank will issue a BPU upon the request of its customer. The BPU is issued in favour of the seller and constitutes an irrevocable and absolute undertaking by the buyers bank to make a payment directly to the seller, following the satisfaction of the settlement conditions defined in the smart contract.
How does the BPU Financing product work?
This product may be offered by a seller’s bank. To access BPU Financing, the Seller, as beneficiary under a BPU, must have received such BPU from the buyers bank. The seller may then request from its bank BPU Financing, which allows the seller to use that BPU to obtain financing from its own bank. The seller must effect an assignment of the rights in respect of the BPU such that there is a transfer of the rights to receive payment under the BPU from the seller to the seller’s bank on the we.trade platform, so that the seller’s bank then has the right to receive payment directly from the buyer’s bank once the relevant settlement conditions specified in the smart contract have been met.
How does the Invoice Financing product work?
This product may be offered by a seller’s bank. The seller will request finance from its bank, based on an invoice that the buyer has accepted via the we.trade platform. The financed amount will include a discount to the invoiced amount. The seller’s bank then has a right to recover the relevant amount that it has advanced to the seller by debiting an amount equal to the invoiced amount on the seller’s bank account, and having full recourse to the seller. No assignment or transfer of the seller’s rights in respect of the invoice is required through the we.trade platform (although the seller’s bank may have the right to require such assignment or transfer of receivables in accordance with the specific terms and conditions of their customer agreement outside the we.trade platform).
What is the we.trade Rulebook?
The we.trade Rulebook contains the rules that apply to the operation of the we.trade platform as between the users that have been granted access to the we.trade platform and we.trade as operator of the we.trade platform.
What type of technology is used in the we.trade platform?
The we.trade platform is built on the latest version of the IBM Blockchain Platformusing Hyperledger Fabric as the underlying blockchain technology.
Why is blockchain technology used by we.trade?
For the first time, competing banks and other services providers are collaborating to deliver an easier and more efficient end-to-end trading experience for buyers and sellers. Blockchain technology brings enhanced security and fraud prevention, addressing privacy and confidentially concerns by only allowing participants to view and access only what they are meant to view and access. Blockchain eliminates the risks of a single point of trust, whilst also removing the single point of failure. When a transaction is created on blockchain, it cannot be altered – often referred as the immutability of data.
How many types of users can join the we.trade platform?
As present, we.trade users include buyers, sellers and banks. In the future, other parties will be added, including credit insurers, accreditations service providers and logistics/transport providers.
How is the onboarding of bank client in the platform carried out?
Companies (buyers/sellers) are provided with access to we.trade via a member bank of we.trade.
Who can access client information on the we.trade platform?
Client (buyer/seller) details are stored by we.trade. This information on the we.trade platform is not accessible by banks. The information is accessible by clients searching for a trade counterparty.
Who can access trade transaction information on the we.trade platform?
The buyer and seller have access to the trade transaction information. The buyer’s bank has access to transaction data necessary to execute the payment.The seller’s bank only has access to trade transaction information if a bank service (Bank Payment Undertaking or Invoice Discounting) is requested.
How are orders and transaction proved?
Transactions are recorded in smart contracts and are stored on the blockchain. These smart contracts will be binding for the related parties as enforced by the we.trade Rulebook.
How it traceability ensured?
Blockchain records the order change history, additional change history is also stored as part of the order data stored on the chain. The data on the blockchain is immutable.
How is privacy ensured?
The we.trade platform is GDPR compliant.
Does each bank own a node?
Yes, each bank owns a node.
What data is uploaded to blockchain?
we.trade leverages a feature in Hyperledger Fabric called “Channels”. Each channel represents a private blockchain for which blocks and transactions are only transmitted to those peers who are a member of that channel. Any information uploaded to a channel is only present on authorized peers, and authorized peers only store the information from the channels they are members of.
Information about a trade - which is shared between a buyer, a seller, and their respective banks - is uploaded to a channel of which only buyer and seller bank nodes are members. Only these bank nodes have access to the information. This includes information about the companies buying and selling (such as company name and delivery address), information about what is sold, for which amount, and which services are procured.
Anonymous track & trace status data is uploaded to a channel of which all banks are members.Concerning the trade information, it may be noted as follows: - Personal data is never stored on the blockchain, only information about the legal entities engaging in trade. - For some specific data associated with a trade, such as document attachments, only a reference is stored on-chain.
What data is not uploaded to blockchain?
Personal data is never stored on the blockchain. Documents attached for the trade counterparty are not stored on the blockchain.
Does we.trade comply with KYC regulations?
Each bank will apply their own policy with regards to KYC to onboard their customer onto the we.trade platform.
Do bank clients accept any terms and conditions of the platform?
Clients (buyers/sellers) sign a customer agreement with their bank whereby they will adhere to the terms and conditions governing the we.trade platform, which are set out in the we.trade Rulebook.
What are smart contracts?
Smart contracts are computer programs that execute predefined actions when certain conditions within the platform are met. Smart contracts allow the ledger state to be modified. They can facilitate the exchange and transfer of anything of value.
What is we.trade?
Making trade simple for both banks and businesses.
