CIMB is Key Enabler for Cross-Border Commodities Financial Services in Partnership with Mastercard

In conjunction with the third anniversary of the Shanghai Free Trade Zone (SFTZ), COMMIN, ValuePay, Mastercard and CIMB Bank today announced the launch of the Cross-Border Commodities Financial Services Platform in SFTZ. The announcement was made at the signing of a Memorandum of Understanding (MoU) in Shanghai today between all parties, and is an exclusive first for Mastercard.

The Cross-Border Commodities Financial Services Platform is a revolutionary payments eco-system and is a significant step towards building an integrated, fully digital platform for all trade and services in the SFTZ.  Some of the key benefits of the platform include:

• Greater transparency and accountability – With a fully digital platform from payments to documentation, the Cross-Border Commodities Financial Services Platform is designed to bring greater transparency and accountability to the trade process.  It provides authorities and stakeholders with deep and detailed visibility of the full trade cycle,  including the payment of duties and subsequent transactions
• Enhanced efficiencies and savings – The platform is designed to bring about significant savings in terms of time and cost to all parties involved in the eco-system. In contrast with the existing system which involves heavy administration and is very labor-intensive, the new platform will enable an efficient and convenient trading environment for all parties
• Deeper connectivity and security – The platform will also bring about deeper connectivity and a higher security for the various parties and stakeholders in the SFTZ.  This in turn will enhance collaboration and coordination within the SFTZ, connecting banks, regulatory bodies, bonded warehouses, merchants and businesses through one platform

The platform will also serve as a means to authenticate the credibility of merchants and traders, opening up opportunities for more banks around the world to be a part of SFTZ’s trade financing and encouraging an increased volume of cross-border transactions.

CIMB Group sees the platform bringing great benefits to Malaysian traders utilizing the SFTZ.

Thomas Tan, Senior Managing Director, Global Wholesale Banking, CIMB Group said, “CIMB, in collaboration with Mastercard, is pleased to be a key enabler in facilitating Malaysian traders’ cross-border B2B digital trade payments and settlements with the Shanghai Free Trade Zone (SFTZ) under its new integrated online platform. Malaysian traders will benefit from a seamless transactional flow with SFTZ, in the form of greater efficiency, cost-effectiveness, transparency and control to enhance cash flow management. Riding on CIMB’s  Corporate Card Solutions, the B2B digital trade payments and settlements solution leverages on cutting-edge technology of virtual card number (VCN) capability, which is a key highlight of CIMB’s Cash Management’s suite of digital products. With the B2B digital solution’s numerous benefits, we certainly look forward to extending it to the rest of our counterparties in ASEAN.”

Perry Ong, Country Manager, Malaysia and Brunei, Mastercard, said, “This initiative which will be powered by Mastercard’s network and technology, solidifies our efforts towards enabling commerce activities to be more efficient, safe and transparent for all. Together with our partner bank, CIMB, with whom we share a strong commitment to the Malaysian market, we are excited about the many possibilities to support merchants and businesses, who can benefit from access and connectivity to the Cross-Border Commodities Financial Services Platform. Through the implementation of best-in-class digital technologies and platforms, we are not only facilitating merchants and businesses in enabling them to scale and make their mark regionally but also looking to contribute towards developing Malaysia’s digital economy, which is integral to the country’s economic growth. The concerted effort also represents the larger potential to strengthen trade ties between Malaysia and China, enhancing business prospects between these two countries.”

At the MOU signing ceremony were (L-R) Thomas Tan, Senior Managing Director, Global Wholesale Banking, CIMB Group; Wendy Chen, Vice President, ValuePay; Wang Lei, General Manager, COMMIN and Dennis Chang, Division President, China, Mastercard, witnessed by officials from the Shanghai Free Trade Zone (SFTZ).

 ENDS

 About CIMB Group

CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, the Group is now present in nine out of 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar and Laos). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Sri Lanka, Taiwan, Korea, the US and UK.

IMB Group has the most extensive retail branch network in ASEAN of close to 1,000 branches as at 30 June 2016. CIMB Group’s investment banking arm is also one of the largest Asia Pacific-based investment banks, offering amongst the most comprehensive research coverage of more than 1,000 stocks in the region.

CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 97.9% shareholder of Bank CIMB Niaga in Indonesia, and 93.7% shareholder of CIMB Thai in Thailand.

CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately RM 38.1 billion as at 30 June 2016. The Group has about 40,000 employees located in 16 countries.

  About Mastercard

Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry.  We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.  Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone.  Follow us on Twitter @MastercardAP and @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.