ASTON iT Finance

Fintech Innovation Lab APAC 2014

Your technological partner for trade finance solutions dedicated to Banks & Factors, Corporations and Credit Insurers

« we provide the technology, you manage & grow your

business »

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Who we are

Our Expertise: Accounts Receivables (AR)

The Context : AR global trends

The Issues : New paradigm and risks The ASTON IT Solution: Receivables platform,

cloud-based, Saas, flexible, scalable, open, web 2.0...

Competitive Advantages & Challenges ahead

Opportunities / future development

Agenda

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Aston IT Finance Team

A unique combination of IT skills and Trade Finance experts

As of June 2014, Aston IT Finance has 30 employees, including :

A team of 18 skilled programmers based in France

Senior management with background & expertise in trade finance (Factoring, Credit insurance, Invoice financing...)

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Amaury de la Lance, founder and Chief Executive Officer

During his 20 plus year management career in Finance and IT, Amaury has held senior roles at HSBC, Credit Agricole and Banque Indosuez in Corporate Finance, Capital Markets and Private Banking. On the technological side, he developed in the mid 9O’s the first intranet system based on Lotus Notes and web for dealing rooms. Amaury also created the first online reporting and trading website for Private Banking in Luxembourg and France.Prior to founding Aston iTrade Finance, Amaury joined Netgem, leader in Interactive TV to develop internet retail banking service for Banks and Corporates in Europe. Amaury holds a degree in Management from ESCP Paris & Berkeley University.

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Jean-Pierre Gaertner, VP Business Director

Jean-Pierre Gaertner has over 35 years of expertise in International Factoring & Trade Finance.Jean-Pierre launched SFF, the first factoring company in France, and held top management positions in European Factoring companies such as Eurofactor.He also launched and managed factoring companies in Morocco, Tunisia, Greece, Africa and Middle East.Jean-Pierre is a world-known expert who has worked extensively with international institutions such as International Factors Group (IFG) and The World Bank.

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Jacques Trauman: VP Sales Director

Jacques Trauman has over 30 years of expertise in international banking with Bank of Boston, American Express, Paribas and BNP Paribas.He was General Manager of Paribas Japan and Head of North-Asia region as well as General Manager of BNP Paribas Mexico prior to serving as Head of Emerging Countries (Latin America, Asia and Middle East).Jacques is the author of several award-winning financial books.

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Bertrand Jubault, Asia Manager

20 years in Asia with extensive sales experience in the area of IT solutions for the banking industry. Founded World Equities Asia in 1994, provider of quantitative financial databases (business acquired by Thomson Reuters in 1997)Specialist of Credit Insurance and trade finance solutions, was the Asia representative of A.U. group, the largest independent broker specialising in Credit Insurance & factoring in the world

Knowledge economy enthusiast !

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Our business : Accounts receivables

From Clay tablet to cloud computing...

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The Big Picture : Trends in world trade

Huge increase of world trade volumes in the last decades

Global B2B volume of Receivables = 20 trillion USD annually of which only 10% are financed Huge business potential

Increasing competition, decreasing profit margins : it's a Buyer's market

Sellers must offer credit terms

Payment terms shift : L/C is replaced by Open account

A game changer for banks and corporations

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L/C cycle : Secured by Banks 

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Corporate Seller

Buyer

Seller's Bank

Open Account secured by Credit Cover

No payment guaranteeCredit TermsNew Credit risksDifficulty to get finance

Credit Insurers

Invoice Open Account

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increased risks in Open Account... ...Covered by Credit Insurance

- Open account = Higher credit risks bank do not control- Credit terms given = Higher cash flow financing needed - AR represent 40% (average) of a company Balance sheet - AR Credit risk need to be covered- Credit Insurance Cover- Accounts receivables : Covered AR become valuable Asset as base for financing

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Technology to Facilitate Trade Finance

Trade Finance traditionally

Is very paper-based, labor intensive and slow

In most institutions it has developed very little from this point

Software is complex, multiples, expensive to maintain and upgrade

The reason : no efficient technology solutions were available

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Corporate Seller

Seller's Bank

Credit Insurers

AstoniTF

Platform

Aston IT SolutionOptimized / virtuous A.R. information flows

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Knowledge management

INTEGRATED Platform: Single platform, connected to your

existing systems

Controls: Your offices, subsidiaries, countries Sellers Buyers Credit Insurers

Manages: Receivables Financing, discounting, Factoring Collection & Recovery Payments & lettering

Alerts – Reporting – Scoring – Consolidation

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SaaS : Software As A Service

Pay-as-you-use fee, variable and proportional rate

Technology

Open and reliable, Cloud Computing

Very low implementation & maintenance costs

Immediately Operational: plug and play

Easy-to-link with your own systems and databases

Multi-users, Multi-countries, Multi-currencies

Risk Management

Open, powerful & adaptive technology

Rate in %

Turnover

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Security Compliance :

Secured access (ISO 27001 certification) Data stored on dedicated servers

(Microsoft Azure partner) Flexibility to host/secure the platfom and

your data on your own cloud/server Data confidentiality

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Drive - Control - Value3 competitive advantages

Management issue Multiple system Batch, no real time Local implementation

No full Control Risks issues on Financing &

Credit Export to excel requested for

Reporting & Consolidation Delayed informations

Costly High IT price Costly development Costly support and maintenance Long delay in order to be ready No client extranet

DRIVE One system, Real Time Management of ALL Trade

Receivables & Financing Private Cloud Computing :No

local implementation

CONTROL Full Risks Control on Financing &

Credit Risks Automated Processes, Alerts,

Reporting, Consolidation Real time informations

VALUE SaaS : Pay as you use One software, one maintenance Ready right now More Business & Profits Client fidelisation & conquest Clients Extranet Portal

Before

After

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Integrate solution to Trade Receivables ManagementA plug and play SoftwareState-of-the-art web 2.0 technology

Breaks down all the barriers to Trade Finance

no cost barrier: Pay-as-you-Use, variable & proportional operating cost no techno barrier: immediately operational no operational barrier: online management with automated flows process no Risk Management barrier: automated decisions and risk monitoring

Reduce your Cost - Grow your productivity & Profitability

Aston iTF Competitive advantages:

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To bring Innovative IT solutions in a conservative, paper extensive

Corporate banking Industry in Asia. « if it ain't broken,don't fix it » mentality

Basel III and its implication for banks (leverage ratio)

Aston IT Finance French based start-up need cooperation with Local banks to succeed !

Challenges

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Disruptive technologies, full of Opportunities around Receivables  :Alternative Financing : crowd sourcing, peer-to-peer lending, ethical lending

Converging Technologies : , inter-connected systems and APIs creating optimized EcosystemsSupply Chain Finance : Reverse factoring, AR securitization,

Big Data,Data Visualisation, Predictive analytics, e-invoicing, Gamification..

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Thank you