Trade finance, a critical component of global commerce, is increasingly challenged by rising compliance costs, stricter regulatory requirements, and the pervasive threat of financial crime. Traditional manual processes, heavily reliant on paper documentation, are not only costly and inefficient but also expose banks to heightened risks.
Addressing these issues, EY’s Trade Risk Analytics Compliance Kit (TRACK) introduces a transformative solution that leverages advanced analytics, artificial intelligence (AI), and robotic process automation to modernise compliance processes.
TRACK automates risk assessments, reduces false positives, and prioritises high-risk transactions, enabling banks to manage compliance more efficiently while cutting operational costs. By addressing global regulatory requirements—such as anti-money laundering (AML), export controls, and sanctions screening—it provides a robust framework for managing trade finance risks.
As Andrew Gilder, EY Asia-Pacific Banking and Capital Markets Leader, notes, innovations like these are critical to enabling banks to better facilitate global trade while navigating complex compliance landscapes.
Jake Jacobson, EY’s Global Trade Finance Risk and Compliance Leader, highlights TRACK's potential to revolutionise trade finance operations. “The key differentiators of TRACK are its maturity and our ability to deploy it to global trade finance organisations at scale,” he explains, underscoring the platform’s ability to streamline operations across vast networks.
Sandeep Pakki, EY US Financial Services Regulatory & Compliance Advisory Manager, underscores the importance of integrating regulation with technology in solutions like TRACK. “The combination of EY regulatory expertise and our collaborations with various regulatory bodies was essential in helping us to effectively develop and implement a solution like TRACK,” he states, illustrating the careful balance required to ensure compliance in such a high-stakes environment.
By adopting innovative solutions like TRACK, banks can not only scale their operations and enhance customer experiences but also ensure transparency and security in an increasingly volatile global trade environment.
Original article by EY (Ernst & Young). Read more here or download the PDF below.
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