BNY and Mizuho Bank Collaborate on Trade Services in Asia

The Bank of New York Mellon Corp. (BNY) and Mizuho Bank are collaborating to provide trade services to corporate clients in Asia.

The banks have formed an agreement for correspondent bank network bank connectivity for international trade, they said in a Sunday (Oct. 20) press release.

This collaboration will leverage both institutions’ expanded trade network to provide expanded connectivity to clients, according to the release.

With the banks having access to each other’s trade network, they can deliver streamlined trade services and simplified compliance processes, the release said.

This collaboration comes at a time when corporations are looking to expand their cross-border trade opportunities, Tsutomu Yamamoto, managing executive officer, head of global transaction banking unit at Mizuho Bank, said in the release.

“This landmark collaboration with BNY will help our clients capture new trade opportunities while managing risks, contributing to global trade growth in the long run,” Yamamoto said.

As corporations seek to grow through cross-border trade, banks’ trade finance solutions are vital in helping them do business and manage risks, Jennifer Barker, global head of treasury services and depositary receipts at BNY, said in the release.

“With connectivity to over 4,000 bank branches globally to facilitate cross-border trade, we are proud to work with Mizuho Bank to enhance international trade network access offering, supporting our clients to scale their businesses,” Barker said.

Trade finance is evolving from simple financial instruments to ecosystem-based offerings that cater to the complete customer journey and include trade loans, discounting loans, supply chain finance and services like letters of credit, performance guarantees and documentary collections, PYMNTS reported in January.

In an earlier, separate collaboration, BNY and Commonwealth Bank of Australia (CBA) said in August that they launched a cross-border payments partnership that lets businesses and individuals who receive international payments from BNY customers get paid in as little as 60 seconds, no matter who they bank with.

In September, Fides Treasury Services and Mitigram partnered to centralize and simplify global multibank connectivity and transaction communications, enabling clients to better manage their trade finance operations. The partnership provides clients with seamless connectivity to Swift so that they can access a wide range of banks and more easily set up bank identifier codes for multibank integration.