Bangkok--11 Dec--Siam Commercial Bank
Siam Commercial Bank Chairman of the Executive Committee Dr. Vichit Suraphongchai and PTT President and Chief Executive Officer Dr. Pailin Chuchottitaworn jointly celebrate the successful launch of a new Bank Payment Obligation (BPO) service, a financial innovation that facilitates international payments for exporters and importers, for PTT Polymer Marketing Co., Ltd. (PTTPM), a polymer marketing arm of the PTT Group. This marks the first time this type of international trade payment service has been made available in the ASEAN region. SCB is one of only five commercial banks in the world ready to provide BPO service to clients. The ceremony was recently held at SCB Headquarters, Ratchayothin.
Siam Commercial Bank has launched a new Bank Payment Obligation (BPO) service, a financial innovation that facilitates international payments for exporters and importers, for PTT Polymer Marketing Co., Ltd. (PTTPM), a polymer marketing arm for the PTT Group. This marks the first time this type of international trade payment service has been made available in the ASEAN region, reflecting the Bank's strong intention to develop innovative products and services catering to its customers' demands.
Commenting on the new service, SCB Chairman of the Executive Committee Dr. Vichit Suraphongchai said: “The Bank is determined to initiate innovative financial solutions to fully satisfy its clients' demands. The successful launch of BPO service for the first time in ASEAN is seen as a great step in consolidating the Bank's leadership in trade finance. This internationally-recognized financial innovation will provide added convenience and facilitate payments for importers and exporters, giving them increased confidence to trade with each other because the Bank serves as an intermediary to check trade and payment information. The first transaction made through this BPO service involved a payment made between PTT Polymer Marketing and its trade partner in China,” she said.
Dr. Pailin Chuchottaworn, President and Chief Executive Officer of PTT PCL, noted: “The launch of BPO service by SCB has fully satisfied PTTPM because it saves on document verification time while reducing documentation complications and the consumption of natural resources such as paper. More importantly, it enables the company and its trade partners overseas to undertake payment transactions more conveniently and efficiently than through traditional payment services. It is part of the company's successful effort to fulfill its goal of becoming an international polymer trade firm with total sales turnover of 100 billion baht in 2015,” he said.
Bank Payment Obligation is an alternative means of international payment settlement, and can be likened to an electronic letter of credit (L/C) with payment obligation by the importer's bank. Unlike conventional systems, BPO uses an automated computer system for export data verification, which can help reduce mistakes made during manual entry and save on transaction times. It enables exporters and importers to undertake financial transactions more efficiently, with confirming payment obligations by the importer's bank similar to those that take place with an L/C.
Under the BPO service, the importer's and exporter's banks are required to accept transaction regulations, apply the electronic data matching system for data transmission, and check whether the export data matches the product purchase order information. Upon verification, the importer's bank will make payment under the prescribed conditions.
At present, some 47 banking groups around the globe have recognized payment settlement through BPO, and more are expected to follow. SCB is the first bank in ASEAN ready to provide BPO service.