ABN Amro was one of the first banks to launch a trade-finance portal in 1998 when the site was predominantly US focused. It has since developed global coverage.
The MaxTrad portal splits into two main areas: the MaxTrad letters of credit (LC) module, and the MaxTrax tool for monitoring the status of transactions. AllTrade, the open account management tool, will be added to the portal early next year.
MaxTrad enables importers to initiate LCs online. Once the bank approves the transaction, it issues the LC for the client. The process is as automated as possible to make it more efficient. By using the site, mistakes are reduced and ultimately corporates have receivables paid more quickly.
Special services are available for importers, such as screens that show evidence of shipment. Within the LC application the client can add purchase order details that enable the importer to specify which goods it has ordered and to see which goods have been shipped and received. The site also provides online payment initiation.
The platform offers applications enabling users to view, for example, new LC activity, advice and payment details. For exporters there are email alerts for the arrival of any requested advice, amendments and payments. Customizable collection letter templates with the option to store drafts and letters are also on the site. Additionally, MaxTrad is one of the few sites to enable a client to do standby LCs through the web.
One option that also made MaxTrad stand out from the competition is the ability to transform the site so that it incorporates information about transactions done with other banks for some of its clients.
AllTrade, which will be integrated onto the MaxTrad site by the first quarter of 2003, is an online offering for open account trade management. It facilitates global trade management between importers and exporters and also enables third-party access.
This part of the portal enables the tracking of the status of purchase orders which can also be received electronically to avoid rekeying. It also has an option that enables clients to manage trade agreements. Importers can add open account trade agreements to contracts that are then facilitated by ABN Amro. Exporters can create shipment documents and check for compliance with the trade agreement. Once this is completed a settlement instruction will be executed.
The MaxTrad platform is also white-labelled out to the firm’s partner banks. ABN Amro has 24 such agreements with other banks, which enable them to distribute ABN Amro’s products using ABN Amro’s back-end processing but their own front end.
