UK Government Recruits Big Banks For SME Trade Finance
As part of a broader effort to keep the economy strong post-Brexit, the United Kingdom has reportedly reached a deal with the nation’s largest banks to provide trade finance to SMEs that are exporting overseas.
According to The Financial Times on Wednesday (July 12), Barclays, HSBC, Lloyds, RBS and Santander are partnering with the United Kingdom to extend trade finance to exporting small businesses (SMBs) and their suppliers. Trade secretary Liam Fox said the move aims to make access to capital easier for those SMEs and their suppliers as the nation works to catch up to other EU markets, like Germany, by boosting exports.
Reports said the agreement will see the government giving banks a guarantee to reduce some of the risk of lending to SMBs. Government body U.K. Export Finance will take on 80 percent of the risk of the loan or bon
Digitalising Trade Finance: the time to act is now
While digitalisation of banking processes has been gathering pace in many areas – from Retail Banking to Payments processing – Trade Finance has been lagging in its digital journey. Recent research from the International Chamber of Commerce found that just 7% of respondents said digitalisation was “widespread”.
Trade Finance has always been paper-intensive, from letters of credit to bills of lading. Although slow moving, the system worked and the need to innovate was not there. Until now the technology solutions deployed by banks to handle the Trade Finance processes have generally been hardcoded – making it difficult to customise or react quickly and innovatively to changing market requirements.
The Growth Of Cryptocurrency: India Versus Global Trends
The Government Of India Is Looking To Legalise Cryptocurrency Such As Bitcoin.
There is a growing consensus that cryptocurrencies will certainly play a crucial role in the way we deal with money. In April 2017, the total market cap for all cryptocurrencies, combined, was slightly higher than $25 Bn. The same market cap shot up by 300% and touched $100 Bn within 60 days. It is already widely reported that cryptocurrency, as an asset class, is set to outpace all other asset classes in relative growth.