The digitalization of the trade finance sector is long overdue. The need to obtain and effectively process trade data has never been more pressing – not only for banks and financial institutions, but for the corporates, businesses, and other supply chain participants they serve.
The reasons for this are manifold. Firstly, trade partners require faster processing speeds, which can only be achieved through a more digital approach and independence from paper documentation. Secondly, supply chains are in desperate need of stability after two years of pandemic disruption. Furthermore, there is a greater focus on providing practical solutions to the industry’s evolving environmental, social, and governance (ESG) requirements and help address the climate emergency.
Blockchain is a potential game changer
To this end, digital solutions such as blockchain can have huge potential for the world of trade finance. In what is still an overwhelmingly manual and paper-based industry, blockchain can provide the technological infrastructure to handle large quantities of data quickly, efficiently, and securely, while connecting the various individual stakeholders through a decentralized network.
Obtaining trade data that encompasses both the physical and financial aspects of the supply chain opens up myriad opportunities for trade participants. In the case of banks, it allows us to provide intelligent, tailor-made trade finance solutions for our clients.
Blockchain technology also allows stakeholders to create digital ecosystems more easily – within which bank, non-bank, and fintech players can collaborate to create new solutions and provide value. Such ecosystems enable deeper relationships and broader client interactions extending beyond what would traditionally constitute banking services.
Continue reading: https://www.fintechfutures.com/2022/06/why-trade-finance-should-embrace-blockchain-to-realise-its-digital-ambitions/
The reasons for this are manifold. Firstly, trade partners require faster processing speeds, which can only be achieved through a more digital approach and independence from paper documentation. Secondly, supply chains are in desperate need of stability after two years of pandemic disruption. Furthermore, there is a greater focus on providing practical solutions to the industry’s evolving environmental, social, and governance (ESG) requirements and help address the climate emergency.
Blockchain is a potential game changer
To this end, digital solutions such as blockchain can have huge potential for the world of trade finance. In what is still an overwhelmingly manual and paper-based industry, blockchain can provide the technological infrastructure to handle large quantities of data quickly, efficiently, and securely, while connecting the various individual stakeholders through a decentralized network.
Obtaining trade data that encompasses both the physical and financial aspects of the supply chain opens up myriad opportunities for trade participants. In the case of banks, it allows us to provide intelligent, tailor-made trade finance solutions for our clients.
Blockchain technology also allows stakeholders to create digital ecosystems more easily – within which bank, non-bank, and fintech players can collaborate to create new solutions and provide value. Such ecosystems enable deeper relationships and broader client interactions extending beyond what would traditionally constitute banking services.
Continue reading: https://www.fintechfutures.com/2022/06/why-trade-finance-should-embrace-blockchain-to-realise-its-digital-ambitions/
