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There is a substantial and growing level of unmet demand for trade financing
Regulatory compliance requirements around KYC demand high investment
Digitization and the state of fintechDoing nothing is no longer an option
The potential of a ‘Digital Trade Bank’ Digital ‘platformification’ of trade and working capital finance to boost
margins, enter new markets and grow the business while maintaining SWIFT compliance to ensure your digital foundations
Contact our Finastra experts to discuss your digital trade strategy
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State of the market: trade, finance and developmentTrade impacts economic conditions, living standards and financial inclusion
Trade will grow at 4.3% annually to USD 19 trillion by 2020.”
Boston Consulting GroupNearly a billion people have been lifted out of extreme poverty.”
The Economist
Global growth is projected to rise from 3.1% in 2016 to 3.5% in 2017 and 3.6% in 2018.”
IMF “World Economic Outlook”
Trade finance revenues predicted to grow by 4.7%.”
Boston Consulting Group
3.1%
2016 2017
3.5%
2018
3.6%
3.6% 4.7%
1bnUS $ 19tn
$45%of global demand for trade finance originates in Europe, China and advanced Asia.
ICC
61%perceive more demand for, than supply of, trade finance around the world.
ICC
US $ 1.6tn annually the gap in global trade finance – particularly in Asia.
Asian Development Bank
Trade finance is disproportionately available to multinationals and large corporates and consistently absent in the micro, small and medium-sized enterprise (MSME) segment.
ICC
US $ 50 million US $ 125
80%
2 hours
are the estimated potential annual cost savings the
digitization of the trade finance business could achieve
per standard LC is the minimum by which courier
charges could be reduced
report that the deployment of digitally
driven products and solutions have demonstrably contributed
to revenue growth
The elimination of paper from trade finance transaction processing could reduce throughput time by two hours per transaction
30%of time spent on
compliance could be saved through
automation
David HennahHead of Trade
Brian EdmondsonGlobal Lead for Trade Finance
Ben Singh-JarroldMarketing Strategist - Trade
ICC report highlights 4.7% growth in trade finance revenue and $ 6bn savings through digitization of trade #digitaltradebank
ICC Rethinking Trade 2017: Courier charges could be reduced by $ 125 per LC with a #digitaltradebank
ICC Rethinking Trade 2017: 30% of the time spent on KYC compliance could be cut at a #digitaltradebank
Read the full report with the Finastra article
Learn more aboutFusionBanking Trade Innovation • A comprehensive, front-to-back trade and supply chain finance solution
• Unrivalled automation for documentary trade and supply chain finance
• The broadest digital front end for working capital finance on the market
• Fully compliant with the SWIFT changes in 2018 and 2019
• The latest innovations in digital trade finance • Your choice: on-premise, cloud or hybrid
The Outlook of digital transformation in Trade and Supply Chain Finance Digitization represents ~US $ 2.6–6 billion savings opportunities (up to 35% over 3 to 5 years)
Today 12 - 18 Months 3 - 5 Years
US $ 12-16bn
global trade opportunities
cost base
Intelligent automation:
Intelligent OCR, artificial intelligence programs, predictive
analytics, robotics
Collaborative digitization:
eDocs, electronic bills
of lading
Emerging digital solutions:
Smart contracts and distributed
ledger technology
global trade opportunities
cost base after digitization
US $ 8-13bn
Source: BCG & Finastra analysis
20-35% US $ 2.6 - 6 billion
$$$$$$Cost control is key area of
focus for banks
68%Over 68% identify compliance and
regulatory requirements as significant concern
Increase in disconnected “digital islands” of activity, bridged by legacy paper and
process-intensive activityThe rise in correspondent banking
cost per relationship, due to compliance
15,000 - 75,000€
68%say SCF and tech are areas
with the highest growth potential in trade finance
1.4%Only 1.4% see fintechs
as a threat
44%say development of
emerging platform propositions, as strategic focus
7%Only 7% see themselves
at the leading edge of innovation
RETHINKING TRADE & FINANCE 2017The journey to digitization and collaboration
This infographic presents the findings of the report
“Rethinking Trade & Finance 2017” by the ICC Banking
Commission, in association with Finastra and explores the
potential of the Digital Trade Bank in driving efficiency,
intelligence and deeper financing in the end-to-end supply chain.
The most comprehensive survey on trade finance, it gathers
255 responses from banks in 98 countries.