Even if the hype of what the dot.com boom could do for trade finance has slipped into history, some solution providers of online letter of credit (L/C) services remain optimistic about the future for web-enabled transactions.

One such optimist is S1 Corporation, a provider of trade finance solutions it says are engineered to increase the efficiency of processing trade transactions.

Optimistic

The Nasdaq-listed solutions provider says increased sales over the last year provide evidence of interest online banking products and a statement issued by the company notes that independent researchers, TowerGroup, also reckon the future is bright for the migration of paper-based processes to online environments.

TowerGroup predicts that US banks will spend approximately US$4 billion on cash management-related technology in 2004, an increase of more than six per cent over 2003 spending levels.

Market penetration

S1 claims that nine of the top 20 US financial institutions and more than 600 banks worldwide now utilise its business solutions that, as well as trade finance, include cash management, business and corporate banking.

Since 1995 the company says its emphasis has been to deliver solutions that streamline the trade finance process for the online marketplace. This emphasis includes the evaluation of new technologies and the efficient application of known technologies.

Trade finance solutions

The company's trade finance solution delivers one integrated system to create and report on trade documents from purchase order to L/C and direct collections.

Earlier this year S1 introduced its Purchase Order Processing System that offers an automated solution for processing purchase orders and completing document examination in relation to documentary L/Cs and open accounttransactions.

Endorsement

Amongst the banks prepared to endorse the company's solutions is Wells Fargo. The S1 statement quotes vice president, International Product Management at Wells Fargo, Jeff Gordon, as saying the online trade finance solution "allowed us to get to market quickly with a comprehensive L/C management platform that is helping us to strengthen our customer relationships and increase our market share and revenue generation with net new customers".

S1 claims their online solutions enable trade documents - including import, export and standby L/Cs - to be delivered "faster, easier, and more securely" than before.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.