BNY and Mizuho Bank partner for trade services

The decision to partner can be attributed to the current financial landscape, where banks face increasing costs and complexity due to scaling regulatory requirements of Know Your Customer (KYC) and compliance demands. At the same time, as financial institutions operate a limited trade relationship network, cross-border trade opportunities with new counter-party banks are constrained.

The current announcement follows BNY and Kanexa’s partnership, with the two organisations working on offering an Open Account Automation solution to corporations. By utilising BNY’s trade finance features alongside Kanexa’s expertise in automation technology, this collaboration intended to offer businesses a comprehensive service that could automate and digitise their workflow.

Scaled connectivity for banks

As part of their agreement, BNY and Mizuho Bank intend to expand connectivity for clients utilizing both institutions’ trade networks, underlining the two organisations’ commitment to driving advancements in the industry and working towards the digitalisation of trade. The collaboration is set to enable both banks to augment their services to clients via access to each other’s trade networks. Supported by BNY’s Trade Network Access Service, the correspondent banks’ end clients are set to be able to simplify trade solutions and optimise compliance processes. Through this, the trade procedure can become more effective while allowing users to expand their operations into new markets.

Moreover, the non-competing partnership between BNY and Mizuho Bank provides solutions to corporate clients across Asia without substantial investments from either institution in trade infrastructure. When commenting on the announcement, representatives from Mizuho Bank underlined that, as clients continue to demand the expansion of cross-border trade opportunities, the financial institution’s agreement with BNY is set to support users in benefiting from these openings while managing risk, and contributing to global trade growth.