In an article for Gulf Business, Olivier Paul, Head of Policy at the International Chamber of Commerce Banking Commission, explains how the move towards paperless trade could help bridge the US$1.5 trillion gap between the demand and supply of trade finance.
Digitalisation will help decrease costs, increase efficiency and allow the introduction of non-banks and fintechs to the sector. These factors combined should help increase market capacity, in turn allowing for a progressive reduction in the trade finance gap.
To read the full article, please click here
The Trade Finance Distribution Initiative, an industry-led initiative to make trade finance an investable asset class – has released a whitepaper discussing the potential for the originate-and-distribute model to transform the trade finance sector and reduce the US$1.5 trillion gap between the demand and supply of trade finance.
The whitepaper, produced in collaboration with online trade finance distribution platform Tradeteq, the International Trade and Forfaiting Association (ITFA) and the International Chamber of Commerce (ICC) United Kingdom, explores the impact of post-2008 banking regulation on the trade finance industry – arguing that the introduction of non-bank capital is key to helping resolve the sector’s financing gap.
To read the whitepaper, please click here.
The news was covered by TXF, Trade Finance Global, TRF, The Paypers, Business Money, Fintech Finance, The Asset.
Tradeteq, the leading online trade finance distribution platform, has been featured in an article by TXF’s Head of Trade, Treasury and Risk, Katharine Morton.
Discussing the potential for trade finance as an investable asset class, Morton notes that there is increasing interest in attracting institutional investors who
might like to invest in such assets.
In turn, she highlights Tradeteq as an example of a digital endeavour which is in the process of developing platforms to put banks and investors together.
To read the article, please click here.
Speaking with Finyear, Tradeteq’s Christoph Gugelmann and Nils Behling discuss how the company has evolved, the role of technology in alleviating the trade finance gap and the state of the French and European trade finance markets.
To read the full article, please click here
In an article for Africa Outlook, Doina Buruiana, Project Manager at the International Chamber of Commerce Banking Commission, explains how digitalisation can help alleviate some of the trade finance sector’s longstanding concerns and help banks in Africa to thrive.
Indeed, results from the Banking Commission’s 10th Global Survey on Trade Finance reveal that digitalisation is set to help improve efficiency, decrease costs and increase market capacity.
To read the full article, on pages 18-19, please click here.
Writing for Banker Middle East, Olivier Paul, Head of Policy at the International Chamber of Commerce Banking Commission, discusses the opportunities for banks in the Middle East to leverage the growing digitalisation of the trade finance sector.
Paul explained that, despite various challenges – including geopolitical concerns – banks in the Middle East are particularly optimistic about digital trade and are embracing the move towards paperless trade finance.
To read the full article, on pages 42-43, please click here.
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
Businesses and their banks are changing the way they approach trade finance and working capital management. The days where large corporates would implement individual products such as factoring or forfaiting to address isolated challenges are coming to an end. In their place, momentum is gathering for a more holistic approach, where corporates map out a wholesale plan to address their working capital needs and draw on a diverse toolbox of products to do so.
To read the article in full, click 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.
Deutsche Bank has signed a memorandum of understanding (MOU) with the Standard Bank of South Africa, agreeing cooperation under the US Department of Agriculture’s GSM-102 initiative. Standard Bank will now be one of the preferred issuing banks of letters of credit for eligible emerging markets seeking to import certain agricultural products from the US.
The finalisation of the GSM 102 agreement places Standard Bank as one of the preferred issuing banks to the US Department of Agriculture’s Commodity Credit Corporation, along with 10 other financial institutions from across the Middle East and Africa region.
Following Moorgate outreach, the MOU signing was covered by TXF, Global Trade Magazine, Trade Finance Analytics and GTR.