TradeOn IC – Expanding the Application for Institutional Clients – case study

In line with our plans, in the second half of 2023, the myRaiffeisen team at Raiffeisen Tech developed a new application for institutional clients. This time, our focus was on Trade Finance, or trade financing. Before this addition to the MyRaiffeisen platform, solutions in this business area were only available for corporate clients. Our efforts last year culminated in the launch of an MVP (Minimum Viable Product), enabling financial institutions to gain insight into their transactions conducted in collaboration with our bank. The growth potential is significant, so the myRaiffeisen team enthusiastically embarked on planning and improving the service with additional functionalities.

To validate the ideas of our business partners in Vienna, we conducted a series of interviews in the first half of last year with a group of prospective clients. In these interviews, we presented a prototype with various features to assess their value from the perspective of the end users. The interviews yielded positive results, revealing that many ideas resonated with users, with the digitalization of the Request for Pricing (RFP) process receiving the highest praise.

The scope of this functionality seemed extensive from the outset. We also knew that additional rounds of discussions with internal RBI departments would be necessary. We concluded that, for the MVP stage, we would defer this part of the development. However, we had already planned for RFP to be a key component of the next product version.

Every Trade Finance transaction a bank wishes to conduct with Raiffeisen is subject to internal assessment and pricing. These tasks are primarily handled by Relationship Managers (RMs), whose decisions depend on various, sometimes dynamically changing, factors. To determine whether a transaction can proceed, its details must also be reviewed in consultation with departments such as Compliance or Risk.

Currently, communication between institutional clients and our representatives occurs via email or phone. Seeking more innovative solutions and inspired by the existing Mitigram tool, we decided to propose an end-to-end electronic process.

What exactly does the new functionality include? To ensure the entire process could be handled on the platform, we collaborated with Relationship Managers to design an internal user interface. This interface allows RMs to review all incoming RFP requests via the eTradeOn IC client interface. Using an online form, RMs can review transaction details and input cost specifics into the tool.

Every key action triggers an email notification with the current status and a link to the tool. As a result, both RMs and clients can access information about previous requests in one place. They can easily track their status, find historical requests with their full history, and use data from past processes to send similar requests in the future.

Currently, only a subset of clients uses the tool, meaning that some processes still follow traditional methods. However, the enthusiasm of our RMs leads us to believe that this number will soon decrease in favor of the new tool. In the initial phase, to encourage clients to transition to eTradeOn IC, RMs also have the option to create requests on behalf of clients. This means that an inquiry made via email or phone can be manually entered into the eTradeOn IC system, potentially shifting the process into the tool thereafter.

After overcoming numerous challenges in scaling eKYC IC in Romania and Croatia, our team eagerly began work on the second phase of eTradeOn IC. We launched at the start of the year, with the first release in April. Over the following months, we incrementally enhanced the process with additional improvements and functionalities.

Currently, the client-facing component has reached its target form (with room for adjustments based on further feedback), while we continue to address backlog ideas for improving the internal user experience. Each month, we observe growing interest in the tool, with an increasing number of users and processes handled through the solution.

The development of the TradeOn IC application marks another step toward the digitalization and simplification of financial processes for our institutional clients. New functionalities, such as the electronic RFP process, bring significant benefits, enhancing efficiency and transparency.

We also expect that this convenient way of obtaining trade finance transaction pricing will contribute to increased volumes of such products in collaboration with our bank. To ensure this happens, we constantly monitor results and collect feedback from users, remaining ever-attentive to our clients' needs.