The Bank of New York (BoNY) has introduced a new internet US dollar collections service designed to complement its existing online trade products, including letter of credit (L/C) initiation.

Called Private Label, BoNY's latest addition to its suite of internet-enabled trade service products is designed to deliver a complete, cost-efficient collections solution to correspondent banks and their customers, via the correspondent's own unique secure internet site.

Correspondent banks and their clients will be able to latch on to BoNY's automated tracking, payment processing, and reporting systems. They will also benefit from fast track processing as well as reduced back-office processing and technology overheads according to the US bank.

BoNY has a reputation for investing heavily in hi-tech solutions in several areas of banking and has lately turned its attention to the trade finance market. In February it announced a major outsourcing arrangement under which the Canadian Imperial Bank of Commerce and its clients will be able to utilise BoNY's front- and back-office systems. The two banks have mirror technologies and operational procedures for issuing documentary credits.

The Private Label concept suggests BoNY is eager to accustom many users to its proprietary technologies. The bank's executive VP of global trade services, Morgan Brassler, confirmed that Private Label "expands our relationships with correspondent banks … and demonstrates our strong ongoing commitment to leading the introduction of value-added trade processing products using the latest technology."

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