ABN AMRO recently launched its latest version of its MaxTrad portal through which provides online access to a range of trade applications.

But the bank says some design features in its portal respond to a shift away from letters of credit (L/Cs) towards open account trading.

New version

In January 2005 ABN AMRO launched MaxTrad 7.0, the latest version of its trade portal though which the bank says users can access applications that facilitate finance of import and export activities, streamline international fulfilment, compliance and settlement activities and mitigate cross-border country, commercial or performance risks.

The latest version of MaxTrad introduces a Supply-Chain Financing module, aimed at creating efficiencies within the supply chain. It provides web-based tools that help customers improve the cash conversion cycle, access real time information and minimise paper flow.

Open account enhancements

MaxTrad 7.0 also features enhancements to the Purchase Order Management module, which focuses on open account management. Users can now view images of original shipping documents online, as they relate to their transactions. According to ABN AMRO this improves reconciliation of discrepancies by providing visual reference to transaction issues.

Purchase Order Manager, introduced last year, aims to enable corporates to outsource open account processing. This according to ABN AMRO responds to the trends of rising trade volumes and falling usage of L/Cs.

Corporate burden

The bank says that while L/C standards require banks to examine invoices and other supporting documentation, under open account, this burden falls to the corporate. Thus the Purchase Order Manager is geared towards providing users with help in the approval of purchase orders and invoice comparison.

It also incorporates functionality such as electronic discrepancy reports and images of documents related to the transaction, reconciliation and payment.

L/C features

Even though ABN AMRO says it is seeing falling L/C usage in some areas, the MaxTrad portal does provide access to the bank's L/C and collections initiation, amendment, and reporting functions.

According to ABN AMRO, users of MaxTrad can initiate import L/Cs faster and more simply and access a complete database of their L/C information.

Users can prepare L/C applications and electronically transmit them to the bank, as well as cutting and pasting information in a way that the bank says virtually eliminates re-keying errors.

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