The Latin American banking industry has experienced huge growth over the past two decades. In an interview with The Banker’s Silvia Pavoni, BNY Mellon’s Head of Treasury Services for Latin America, Dino Sani discusses how well-equipped financial systems, expert knowledge on managing volatility and a strong regulatory framework has led to the growth of regional giants.
When speaking on how technology will shape competition in the future, Dino Sani said, “In the short-run, the biggest challenges are not the current economic situation or the Covid-19 and how it affects our countries. For financial institutions, new technology is the main challenge – they need to reinvent themselves to be in the market, otherwise the markets will reorganise and the technology might make it more difficult for the more traditional banks to compete”.
To listen to the full video, click here and scroll to the bottom of the web-page.
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 multi-bank initiative seeks to apply distributed ledger technology to trade finance. News of Marco Polo’s successful proof of concept was covered in Global Trade Review, Market Business News, Trade & Export Finance, Bobsguide, Banking Technology, Fintech Futures, Finextra, Blockchain News, Coindesk, CoinTelegraph, Toinnov, Enterprise Times, FSTech, Pyments, and Trade Finance Global.
Supply chain finance (SCF) has evolved considerably in the last 15 years. In the early 2000s, bank revenues from SCF services only represented a very small proportion of the total trade finance business. And the wider SCF landscape comprised only a handful of banks implementing payables finance programmes for their largest corporate clients.
Today, appreciation of the benefits offered by SCF is growing. However, there is still room for growth. Indeed, according to McKinsey research undertaken in 2015, only 10% of the industry’s potential revenue pool is currently being met.
Commenting in BCR’s World Supply Chain Finance Report 2018, UniCredit’s global co-head of trade finance, Adeline de Metz, argues technology could play a key role in helping to unlock SCF’s potential moving forward.
“New solutions are being developed to enhance the speed, efficiency and transparency of trade settlement. Blockchain technology is now starting to bear fruit, with the likes of we.trade promising to improve the protection, management and tracking of transactions by aggregating the processes of whole supply chains on a single blockchain register, accessible via an intuitive digital platform”.
De Metz added; “the incoming generation of digital platforms are also helping to remove the geographical and financial barriers to participation in SCF. More and more small suppliers are now gaining access to SCF even when they are based in locations previously too remote for this kind of programme.”
To read the article in full, see p.27-29 of the World Supply Chain Finance Report 2018.
Commerzbank has won the magazine’s award for the third year running.
Klaus Josef Mueller, Head of Product Management Trade Finance & Cash Management, comments: “It’s a real honour to be included, yet again, among such a prestigious list of winners, and even more so in the home market. This award reflects our dedication to helping our growing corporate customers in Germany reach their operational potential. Making good on this commitment requires us to be at the cutting edge of treasury and cash management. Clients now expect high-end products and services from their banks to be cloud-based, driven by apps, and digitally secure – and here, we’re the ones raising the bar.”
EMpowerFX provides clients with direct access to real time quotes for well in excess of 500 emerging and developed-market currency pairs. The platform’s launch was covered across the specialist financial and foreign exchange press, including FX-Week, Forex News, Treasury Today, Profit & Loss, COVER South Africa, Institutional Asset Manager, Modern Ghana, FTSE Global Markets, Global Banking and Finance Review, Banking Technology, and Caribbean News Now.
Ahead of their latest edition, The Banker recently interviewed Olivier Paul, ICC Banking Commission’s Head of Policy. The cover article, “Is technology enough to plug the SME financing gap?” explores how developing standards around digital transactions and reforming regulation will be crucial in encouraging technology to support SME trade financing. In particular, technology has a role to play in facilitating lending to small businesses, and, as Olivier notes, such a process will require transparent dialogue and clear definitions of digital transactions.
Additionally, Olivier discusses how best to drive adoption in the industry, the need for open and transparent dialogue as well as the importance of a global initiative in driving adoption.
To find out more, please see the full article here.
All banks want to take their products and services into the digital age. But Edith Weymayr, Commerzbank’s Divisional Board Member, Mittelstandsbank South, explains that true innovation means going further than developing flashy smartphone apps. In an article for World Finance magazine, she argues that “driving change requires taking a holistic, end-to-end strategy that can set new trends and, through collaboration, weather digital disruption” – taking inspiration from the bank’s ongoing transformation programme, “Commerzbank 4.0”.
Find the article on pages 72-73 of the latest edition.
Edith Weymayr, Divisional Board Member, Mittelstandsbank South at Commerzbank, was in the studio at the London Stock Exchange to film an interview with World Finance magazine. In “Spearheading the digital revolution in banking” Weymayr outlined the bank’s strategy for embracing the digital era of finance and better supporting SMEs.
Where’s next for the digitalisation of trade finance? Angela Koll, Commerzbank’s Specialist Trade & Supply Chain Finance, shares her thoughts in the latest edition of TMI Magazine, but warns that innovation in the industry could take time to spread.
Find out more in “Waking the Sleeping Giant? The Potential for Trade Finance Transformation“.