Deutsche Bank has become the first European bank to be approved for the State Administration of Foreign Exchange (SAFE)’s Pilot Scheme for Facilitation of Foreign Exchange Receipts and Payments for Trade.
As global payments continue to grow, the scheme seeks to simplify and improve foreign currency payments for cross-border trades.
Jerry Chen, Asia Pacific Chief Financial Officer of Aptiv, commented: “Cross-border foreign exchange payments have been a lengthy process for corporates. With Deutsche Bank’s pilot scheme services, we see the direct benefits with faster and easier payments.
“As Aptiv’s banking partner, Deutsche Bank has provided us with a tailor-made pilot solution, which improved the overall process throughout the payment cycle and it is testament to Deutsche Bank’s professionalism and commitment.”
As part of the scheme, eligible clients of Deutsche Bank China (Shanghai Branch) will be exempt from providing supporting documents for foreign currency trade payment upfront, allowing a straight-through payment processing upon the client’s e-banking instruction.
Compared with the traditional payment procedure, this cuts the foreign currency payment process time from days to just a few minutes. The bank has completed its first foreign currency payment under the pilot scheme for global automotive technology company Aptiv on 30 September.
Alvin Ho, Deutsche Bank China’s Head of Corporate Cash Management, added: “The successful approval for the foreign currency trade payments pilot scheme is solid testimony to our local market expertise and commitment.
“Deutsche Bank in Shanghai is one of only a few banks that offer clients both capital account and trade account pilot solutions. We will continue to leverage our information technology capabilities to provide convenient, efficient, and secure one-stop cross-border payment solutions to our clients.”
Expert Analaysis: This announcement is a significant affirmation of the work of Deutsche Bank has been doing specifically when it comes to Cross-border foreign exchange payments. The approval couldn’t come at a more integral time with cross border payments taking on heightened importance in the current climate.