Commerzbank has reached a milestone in the digitalisation of the trade finance industry, having processed the first Bank Payment Obligation (BPO) deal in Austria. A BPO allows the automatic release of funds between banks based on the matching of electronic data. Companies are increasingly recognising the benefits of the trade instrument, which include faster communication and more efficient, flexible handling of transactions.
The latest BPO transaction covers the export of bus components from Germany and Italy to Slovenia. The buyer, a customer of Commerzbank AG Austria, is TAM-Europe, located in Maribor, Slovenia, and one of Europe’s largest bus and commercial vehicle manufacturers. The suppliers are MAN Truck & Bus AG, a leading commercial vehicle manufacturer headquartered in Munich (and another customer of Commerzbank), and ISAF Bus Components srl, an Italy-based supplier and customer of UniCredit. The transactions mark the importer’s first steps toward using the BPO for all its trade business.
News of the BPO was covered by: Global Trade Magazine, Trade Finance, Trade & Forfaiting Review, Finextra, Banking Technology, Treasury Today, Trade & Export Finance, Global Banking & Finance Review, 4Traders, Global Trade Review, Commercial Payments International/EuroFinance, and Cash & Treasury Management File.