Joining the SCHUMANN Community for De-Risking Supply Chain Finance

Credit risk management and risk-bearing capacity are increasingly the focus of the supervisory authorities and therefore of banks and financial institutions in Supply Chain Finance. The opportunities of digitalisation to meet these requirements are available.

Focussing on the best solutions on the market is essential. That is why SCHUMANN's mission as a specialist in AI-supported credit risk management software and underwriting software is to be integrated into digital end-to-end processes.

Right from the start of our company's activities, we worked closely with credit rating agencies and trade credit insurers and have since developed a network of 40 partners who combine technical integration services to provide a complete solution for credit risk management.

Finally, the end-to-end solutions have been completed by integration into the IT landscape of customers and thus a connection to ERP solutions. Gone are the days when de-risking solutions were contained in a single ERP solution.

AI innovations in credit risk management also show the additional benefits of working with data and software specialists. While automatically granting credit limits has long been implemented in IT solutions in credit risk management, we are now turning our attention to AI-supported forecasting of default risks and the prediction of incoming payments based on payment experiences. Data from credit agencies and trade credit insurers refine the results of the insolvency forecast. Another effect is fraud prevention, when AI identifies anomalies, like fraudulent invoices.

The economic benefit for banks and financial institutions is a consistent scaling of the business volume in factoring and receivables financing through AI powered digital decision engines.

Whether a human decision-maker will still be needed in the future for credit risk management tasks or whether the system will only make a suggestion, depends on the competences granted to the IT solution or the extent to which legal regulations such as data protection allow fully automated decisions.

Our close cooperation with national and worldwide leading industry organisations like FCI, the global representative body for factoring and financing of open account domestic and international trade receivables, ICISA, The International Credit Insurance & Surety Association and ITFA, The International Trade and Forfaiting Association enables close dialogue between representatives of banks, financial institutions, credit insurers and brokers as well as representatives of associations and authorities that create the framework conditions for Supply Chain Finance, Factoring and Receivables Finance.

SCHUMANN felt very honoured to prepare the content of the masterclass on the topic “De-risking Supply Chain Finance through Digitalisation” the day before the 9th EU Factoring Summit in Vienna hosted by the FCI and The EU Federation for Factoring & Commercial Finance (EUF). FCI and EUF represent over 98% of all European market players with a factoring volume of EUR 2.44 trillion in 2023. Understanding the financial and insurance solutions for a prospective digital linking of services is crucial for the digital transformation of the economy.

We invite you to an intensive dialogue with us and become part of the Credit Risk Management community with SCHUMANN. Save the date for our digital Credit Risk Management Conference on 12 September 2024 in your calendar and connect. You can register here.