GTR speaks to UniCredit global head of trade products, global transaction banking, Markus Wohlgeschaffen, about the evolution of corporate demand for the bank payment obligation (BPO). He explains that while the first transaction, signed in October last year, was largely the result of the UniCredit’s promotional activities, the bank is now being approached by corporates looking for BPO transactions.
In particular, Wohlgeschaffen mentions the case of German automotive manufacturing company ZF, which used BPO readiness as a selection criteria in choosing its bank partner: while originally looking into it with another bank, ZF switched to UniCredit after being notified that the bank had concluded its first transaction last year.
Finally, Wohlgeschaffen explains that despite what some have called slow progress so far, the BPO is on track to reach critical mass “by the end of 2020”.
Watch the video below: