Win a supply chain finance business in Asia
The culmination of most SCF tenders is the customer presentation where the bank has the opportunity to present its solutions to the customer. Usually a PowerPoint presentation will be made by the lead vendor that summarizes the solution being presented. This should be customized to meet the client’s requirements and concerns. Sometimes a common template is kept to respond to client proposals and then cut and pasted to respond to the client’s RFP document and for client presentations. A personalized, client-specific response to the RFP and presentation materials is recommended to demonstrate to the client that the bank has done its homework.
Before the presentation to the client, it is important to spend some time determining who should attend the banking session. While seniority and a fit with the client’s profile are important, it’s also important to have the people in the room or on a video call who will be doing the actual work – this is the technical resource, the vendor integration manager, global project manager, etc. This not only puts faces to the names in the proposal submitted earlier, but the client can also see who they are and what their references are, which helps clients determine if they are comfortable working with them. proposed bank team. .
Sometimes customers request a live demo of the bank’s platform and its features. This requires some homework on the part of the bank to ensure that the demo version of the platform works on real presentation time, not forgetting to ensure that there is good internet connectivity in the room . Customers can ask questions about cybersecurity and how often the platform has been “ethically hacked”. There might also be questions about how the bank will protect customer data and comply with stringent data regulations such as EU GDPR or Singapore’s PDPA.
It gives confidence to a customer when an existing customer of the bank is willing to vouch for the bank and express satisfaction with the solutions and services provided by the bank. It is important to obtain prior approval from the client who will be referred before sharing their names and contact information with potential clients. At the same time, the bank must have a diversified source of references so as not to overload the same client each time there is a call for tenders.
There was a huge demand for cash from customers at the start of the pandemic. It is important to highlight how a bank can meet the liquidity needs of the customer when bidding.
Nowadays, the environmental, social and governance (ESG) solution for SCF has become an essential offer in a tender. This should also be tailored to the client’s specific ESG goals and how these will be measured by independent ESG rating companies. Today, the focus is more on the “E” or the environment and how the bank could support the client’s environmental sustainability goals and help its suppliers achieve these goals incrementally through an incentive-based framework. on rewards.
The IFRS proposal requires the disclosure of information about financing arrangements with suppliers that enables users of financial statements to assess the effects of these arrangements on the liabilities and cash flows of entities (purchasers). The bank should inform the buyer of these new requirements during the bidding process and the buyer should discuss the details of this disclosure with its accounting firm on the qualitative and quantitative nature of these requirements.
Every customer is different and their supply chain finance needs may also be unique. There might be issues in the RFP related to dynamic updating. Customers can ask the banks to reimburse the costs related to the ERP integration work on their side with the bank. There is no exhaustive list of RFP requirements. SCF’s experience and expertise will help the bank address and customize solutions for each client tailored to their needs and win new client mandates.
Supply chain finance offers banks the opportunity to not only generate a sustainable revenue stream, but also to support thousands of micro, small and medium-sized enterprises (MSMEs) that are unlikely to be eligible to be customers of the bank due to their small size. SMEs and MMEs are driving the engine of economic growth in most Asian markets. There have been negative media reports about the overextension of terms and the misuse of supply chain finance. It is the responsibility of the Bank and its customers, the Buyer, to ensure that the SCF is used responsibly and to ensure that suppliers receive the best benefits from these programs. Otherwise, it could have a very negative impact on the entire industry.