Nucleus Software launches end-to-end digital offering to maximize Supply Chain resiliency in the Covid-19 world

 Nucleus Software, the leading provider of lending and transaction banking solutions to the global financial services industry, today announced an end-to-end digital solution to help banks increase corporate supply chain resiliency in the Covid-19 world.

As many economies report the biggest economic slumps on record, and waves of lockdowns create an uncertain environment, the impact on businesses is unprecedented. Over the years, supply chains have evolved into inter-connected supply-and-demand networks with the objective of minimizing costs, reducing inventories, and boosting asset utilization. This has resulted in profound interdependencies – a disruption at one supplier can be detrimental to the operations for a company located half a world away. Today, 94% of the Fortune 1000 are already experiencing supply chain disruptions.

The latest version of Nucleus Software’s transaction banking solution FinnAxia 7.5 helps banks improve the stability of corporate supply chains and reduce disruptions in these uncertain times. The solution supports the 4 corner model (two-bank interoperable), 3 corner model (single-bank closed) and the point model of financing which allows large banks to extend their SCF services to SMEs by partnering with local banks – who are often best placed to assess the performance risks of locals SMEs. Banks and corporates are provided a real-time 360° view of all supply chain transactions flows through the dematerialization of the procure-to-pay and order-to-cash cycles with the 6 E’s – e-procurement, e-invoicing, e-consent, e-acceptance, e-financing and e-settlement.

This ensures more accurate limit management for the corporates and provides useful information to banks on the credit worthiness of the supplier. It also allows faster supplier on boarding and faster payment of invoices- which is critical to the survival of the smaller suppliers and/or service providers today. To further improve resiliency, FinnAxia 7.5 comes with sophisticated loan lifecycle management, invoice management and delivery order capture for risk mitigation. The solution also introduces an AI based enquiry chatbot to resolve supplier queries in real time ensuring a more collaborative ecosystem.

In order to make informed decisions on supplier payments, it is imperative for corporate treasurers to have real-time visibility and access to cash and liquidity. Supporting the increasing need for real-time operations, FinnAxia 7.5 enables banks to create “On Behalf Of” structures such as POBO (Payment On Behalf Of) and ROBO (Receivable On Behalf Of), for their customers conceivably bringing down complex banking structures that encompass thousands of accounts across hundreds of banks, involving a wide range of currencies, into just a single physical account in a single bank. The centralized control over the outgoing payments ensures faster reconciliation and provides an enhanced view of cash positions hence eliminating trapped liquidity.

Mr. RP Singh (CEO, Nucleus Software) said, “During the ongoing crisis, banks will need to balance their dual role of “transmission mechanism for relief programs” and “system stabilizers” really well to ensure their customers get all the support they need. A lot will depend on how their digital infrastructure handles the increased demand. The latest version of FinnAxia will help banks REACT to the immediate corporate customers’ concerns around remote banking and liquidity management and ADAPT to a changing world where supply chains become more local and new security concerns emerge. More importantly it will enable them to LEAD in a post-COVID API economy through launching hyper-personalized solutions and enabling hyper-fast banking”.

Mr. Harshit H Jain (Global Head – Transaction Banking & Digitization Business, Nucleus Software) added, “Along with supply chain disruptions, organizations are also witnessing a rapid rise of cyberattacks and frauds in recent times due to the increase in remote working, economic slowdown and more and more transactions becoming digital. With cyber-attacks on banks surging 238% during the pandemic, banks need to ensure secure transactions for their corporate customers by detecting and preventing errors and fraud before they hit business. In addition to our AI- enabled real-time fraud and fault detector which is already being implemented in banks across the globe, the new release introduces a host of new security features such as positive/reverse positive pay, 24*7 transaction processing with time based daily limits and an AI-enabled KYC during customer on-boarding for comprehensive protection against frauds to banks and their customers alike.