Media Contact:
Elizabeth Hodges
(704) 383-5188
Fasturn, Inc. contact:
Brendan Flynn
(310) 407-6965
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September 11, 2000
First Union and Fasturn Partner to Provide First Online, Global Business-to-business Financial Transaction
CHARLOTTE -- First Union Corporation, a leading international financial services provider, and Fasturn, Inc., the next-generation technology and business solution provider for the apparel industry, are creating the first global, Internet-based financial transaction solution that will allow companies to make high-dollar, global, business-to-business (B2B) purchases without leaving the Internet or reentering data.
Live since May 2000, Fasturn has been facilitating B2B e-commerce transactions for some of the apparel industry's leading retail buyers, manufacturers and suppliers. Now, with the integration of Fasturn and First Union's solutions, these same buyers conducting business with Fasturn will be able to make large-scale, cross-border, financial transactions without leaving the Internet as early as December of this year. Until now, B2B exchanges generally provided electronic invoices, but buyers had to print out invoices and route manually or re-key information into existing enterprise resource planning and banking systems. Fasturn's network captures all the data necessary to populate a purchase order that can be conveyed to third party organizations such as First Union, which will then issue letters of credit. The Fasturn/First Union solution will capture all the traditionally required information including product specifications, quantity, shipment specifications and authorizations for letters of credit directly within the Fasturn site.
When a buyer using this new solution submits an order to one of the thousands of Fasturn factories worldwide, the original order data is converted to one or multiple purchase orders that maybe seamlessly transferred to First Union. The logic within First Union's AutoLCTM technology will generate and present to the bank's customer the pro-forma LC application within the Fasturn website. Once approved by First Union, the letter of credit will be instantly transmitted to First Union's Global Operations Centers for issuance. The technology will also allow for purchase orders and letters of credit to be amended through a single operating platform. After the initial release of this capability in December, it is anticipated that First Union and Fasturn will integrate the Bank's CyberXportSM offering, which will enable vendors to see "real-time" LCs issued in their favor without having to wait for their local bank to mail out the hard copy.
This complete integration of the procurement and financial processes will benefit the buyer because it eliminates duplicate data input, enhances accuracy, speeds the entire transaction process, improves cash flow, allows real-time letter of credit status updates, decreases discrepancies and reduces costs.
"This is the first truly integrated letter of credit solution within a sophisticated e-commerce offering," said Simon Constantinides, director within First Union's Global Trade Services Group. "Until this time, cross-border B2B e-commerce transactions, requiring credit support in excess of credit card thresholds, were initiated and settled outside of core B2B e-commerce environments albeit through a web-based platform. By working with Fasturn, First Union will be able to provide true web-based letter of credit processing capabilities to its clients within the Fasturn direct procurement network."
Large-scale financial transactions have, until now, remained offline because of technological constraints, legal obstacles (e.g. making digital signatures valid on legal documents) and the lack of participation from a truly global financial institution like First Union. With recent changes in the law and the partnering of Fasturn and First Union, all of the previous obstacles have been overcome. The open architecture of the Fasturn solution also allows seamless integration to other Fasturn partners such as insurance, inspection, financial and logistics service providers.
"We are very excited to offer the apparel industry the first truly global, on-line, B2B financial solution that both our Global Marketplace and Private Marketplace customers can benefit from. By joining forces with a globally established and innovative bank like First Union for the design and implementation of front and back office support, this first-to-market solution will give the mutual customers of Fasturn and First Union a significant savings in time and expense as well as improved accuracy regarding global financial transactions and documentation," said Belita Ong, senior vice president, Business Development, Fasturn.
About Fasturn
Based in Los Angeles with offices in New York; Seoul, Korea; and Hong Kong and agents throughout the globe, Fasturn, Inc. delivers the next-generation of sourcing solutions for the apparel industry. Fasturn's proprietary technology enables pre-qualified buyers and sellers to streamline sourcing and production, delivering increased margins and workflow efficiencies. Fasturn's Private Marketplace allows retailers and manufacturers to work with existing suppliers and customers in a secure and private network. Fasturn's Global Marketplace aggregates the fragmented communities of garment suppliers, agents and buyers deliver significant cost savings by uncovering new sourcing opportunities, condensing the time for sourcing and offering real-time tracking of the production and procurement cycle. Fasturn has leveraged its deep apparel knowledge and technological expertise to develop practical solutions that meet the most demanding apparel sourcing challenges today.
About First Union
First Union's International Division's Trade Services Unit is the fifth largest trade provider in the U.S. and the leading third party trade processor globally. First Union also ranks first in Eximbank insurance program usage. The company ranks seventh in CHIPS payment system volume and is a global market leader in U.S. cash letters processed for foreign banks. First Union's International Division has 7000 international correspondent banking relationships and more than 1,400 correspondent bank accounts in over 130 countries. The Division's global network encompasses 30 representative offices, five international processing centers and five foreign branches. In addition to correspondent banking, global trade services and trade services outsourcing, First Union also provides embassy banking and international corporate banking. First Union's International Division works with the company's Global Capital Markets, Global Capital Management and Global Cash Management divisions to service customers worldwide.
First Union (www.firstunion.com) (NYSE:FTU), with $258 billion in assets and stockholders' equity of $14 billion at June 30, 2000, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 12 East Coast states and Washington, D.C., and full-service brokerage offices in 41 states and international offices worldwide. Online banking products and services can be accessed through www.firstunion.com.
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