Growth in regulation impacting lending, along with rapid globalization have put pressure on capital providers’ due diligence capabilities. Pair this with the inherent complexity of trade and project finance transactions and it is clear why many capital providers are now choosing to outsource their due diligence. Matt Reed, Associate Director at RedRidge Diligence Services, explains the trends in the sector.
Read the full article here
Correspondent banking is evolving. Once a predominantly payments network, it is now developing into a ‘relationships network’ – with banks looking to facilitate seamless interactions between clients by connecting them on purpose-built digital platforms.
Corporate-to-corporate trading platform we.trade is already live and improving the way businesses trade with one another, and there is potential to take this further by combining we.trade with a corporate-to-bank initiative, such as the Trade Information Network – enriching interactions between buyers and suppliers through proactive support from a broad network of banks.
This could offer the best of both worlds. Corporates would achieve greater transparency when it comes to securing contracts, while banks would have the opportunity to introduce value-added services throughout the transaction process.
To read this article in full, click here.
In an article for The Banker, Mark Evans – member of the International Chamber of Commerce (ICC) Banking Commission Executive Committee and Managing Director, transaction banking, at ANZ – comments on the benefits of blockchain in trade finance.
Evans says that Distributed Ledger Technology (DLT) “enables every participant in the chain to be able to see all transactions or touch points in one ‘block’ of information. This provides a high level of visibility and transparency to the progress of the transaction.”
To read the article in full, please click here.
Author of a newly-released whitepaper, ‘Machine Learning Credit Analytics for Trade Finance’ and head of AI at Tradeteq, Michael Boguslavsky has written an expert piece for The Global Treasurer where he discusses how machine learning techniques, combined with broader and deeper company data, can improve credit scoring for SMEs. Current scoring methods – often forms of the Altman Z-score – are a primary reason SMEs so often fail to secure the trade finance they need, argues Boguslavsky.
Go here to read the full article.
Tradeteq, the trade asset distribution platform, recently released a white paper demonstrating how machine learning, combined with broader data collection, can improve access to trade finance for SMEs. Authored by Michael Boguslavsky, Tradeteq’s head of AI, and titled Machine Learning Credit Analytics for Trade Finance, the paper proposes a radical new approach to credit scoring that could particularly benefit SMEs in trade finance.
To read coverage of this news in the specialist press, please go here: Finance Digest, Global Banking & Finance Review, TXF, TRF News, Fintech press releases.
To download the whitepaper, please go here.
Speaking to GTNews to mark the publication’s 20th anniversary, BNY Mellon’s Dominic Broom, Global Head of Trade Business Development, and Bana Akkad Azhari, Head of Relationship Management for the Middle East and Africa and the Commonwealth of Independent States, trace the most noteworthy drivers of global trade over the past two decades – including China’s introduction into the World Trade Organisation, technology’s role in cutting costs and streamlining the physical supply chain, and post-crisis regulatory changes that have opened the gates to new non-bank trade financing market entrants – which all indicate a resilient and versatile trade industry.
The revolutionised trade landscape is not void of challenges however, with Broom underlining “sticking points” in the development of the financial supply chain, such as management of documentation and tighter regulatory requirements. Pointing to technology’s radical effect on trade so far, Azhari highlights how bank data can be developed into digital solutions to address these issues and to analyse key global trends in order to add value to the client experience – with Broom adding the importance of correspondent banking to best harness and leverage this data to enhance trade enterprise across the world.
To read the full article, please click here.
The International Chamber of Commerce (ICC) Banking Commission has released its 2017 Trade Register report—Global Risks in Trade Finance. The report reveals the low-risk nature of transactions that support global trade, and confirms that trade finance products continue to present banks with low levels of credit risk.
The 2017 Report draws on information from 22 member banks to present a global view of the credit risk profiles of trade and export finance transactions. It is based on over US$10.5 trillion of exposures and more than 20 million trade finance transactions from 2008 to 2016. The trade finance products in the register are Import Letters of Credit (L/Cs), Export L/Cs, Loans for Import/Export, and Performance Guarantees, and the 2016 Trade Finance data set includes approximately 40% of global traditional Trade Finance flows, excluding Loans for Import/Export.
Following Moorgate’s outreach, the news was covered by: TXF, Trade Finance Global, Hellenic Shipping News, FTSE Global Markets, FinTech Finance, TRF, Global Banking & Finance, Freight & Trade Weekly, New Telegraph, CPI Financial, Cash & Trade, Export Manager, Trade Arabia, Leasing Life, PYMNTS and L’Economiste.
Commerzbank’s new video explains the significance of world trade and the important role the bank plays. Frank-Oliver Wolf, Head of CTS Sales Germany, outlines the bank’s global presence, and Enno-Burghard Weitzel, Head of CTS & FI Product Management Trade Services, shows how it is ushering in the new technologies that are revolutionising trade finance.
Watch the video in English or German.
The video was produced and edited by Chuffed Productions.
As the Trans-Pacific Partnership (TPP) finds its feet, Agnes Vargas, Regional Head, Greater China & ASEAN at Commerzbank, looks to the Regional Comprehensive Economic Partnership (RCEP) as another means of facilitating trade in the Pacific.