Bank Payment Obligation

What is BPO?

A Bank Payment Obligation (BPO) is an irrevocable undertaking given by one bank to another bank that payment will be made on a specified date after a specified event has taken place. This 'specified event' is evidenced by a 'match' report that has been generated by SWIFT's Trade Service Utility (TSU) or any equivalent matching application.

BPOs enable banks to mitigate the risks associated with international trade to the benefit of both buyers and sellers. They facilitate financing propositions across the supply chain, from pre-shipment to post-shipment. It is an assurance of payment to the seller like that obtained under a confirmed letter of credit.

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Benefits of the FinShare Solution

  • Fully supports the SWIFT TSU and standard ISO20022 TSMT messages as per ICC URBPO

  • Offers its own matching engine for reconciling data, which is ideal for intra-bank transactions.

  • Connects easily with corporate ERP systems via industry standard interfaces or enterprise buses

  • Offers distinct processing streams for import and export transactions

  • Notifications (i.e. email, SMS) will alert Users to discrepancies, exceptions, etc

  • Generates various reports for banks and corporate including transaction status, analysis, history, and more

  • Works seamlessly with other FinShare modules for both pre- and post-shipment financing options

  • For both BPO and financing transactions, bank and party limits are monitored and controlled via a comprehensive risk management subsystem

  • Multi-currency and multi-lingual application

Ready to join the FinShare solution?