News & Update on Trade Finance Across The Globe

Deutsche Bank appoints Atul Jain as head of Apac trade finance

Deutsche Bank today announced the appointment of Atul Jain as Head of Trade Finance and Trade Finance Flow – Asia Pacific, effective immediately. Based in Singapore, Mr. Jain will be responsible for leading the trade finance business in the region, and for driving the execution of the business’ strategy.

In his new role, Mr. Jain will report to Daniel Schmand, Global Head of Trade Finance, and Michael Dietz, Global Head of Trade Finance Flow. He will also regionally report to Lisa Robins, Asia Pacific Head of Global Transaction Banking.

Mr. Jain was most recently Regional Chief Operating Officer for Deutsche Bank’s Corporate & Investment Banking division and Global Transaction Banking business in Asia Pacific. Prior to this, he was Deutsche Bank’s Acting Regional Head of Group Strategy in Asia Pacific, and began his career in the U.S. with Deutsche Bank’s Global Corporate Finance business.

Source: https://www.finextra.com/pressarticle/70223/deutsche-bank-appoints-atul-jain-as-head-of-apac-trade-finance

Trade Financing Firm Vayana Network Raises $4M From IDG Ventures and Jungle Ventures

Pune based Vayana Network has received Series A funding of $4 million from IDG Ventures and Jungle Ventures. This follows an earlier round of investment in the company by Reliance Industrial Investments and Holdings Ltd (RIIHL) and couple of other investors.

Vayana Network is India’s largest technology based third-party B2B trade financing platform and has so far processed over Rs. 4,000 crores ($600 million) in financing via 9 lending partners (5 Banks and 4 NBFCs) across large, medium corporates and SMEs in India. Vayana was selected by GSTN as one of the 34 GST Suvidha Providers (GSP), to facilitate smoother transition by businesses to GST. The equity investment will be used to further strengthen its B2B trade financing network both in India and abroad.

Commenting on the latest round of funding, R N Iyer, Founder and CEO, Vayana Network, said “This funding comes at an exciting time with GST driving a digital invoicing ecosystem in India and in the backdrop of increasing velocity for trade based financing led by third party platforms globally. Our mission from day one has been to focus on designing the simplest possible process for corporates of all sizes and from different industries to avail short term financing for their buyers and suppliers. Our special focus on trade documentation has also enabled us to play an important role in GST regime. We plan on offering several value-added services for our clients to help them take advantage of the trade data.”

http://bwdisrupt.businessworld.in/article/Trade-Financing-Firm-Vayana-Network-Raises-4M-From-IDG-Ventures-and-Jungle-Ventures-/17-07-2017-122259/

Axis Bank launches digital invoice discounting platform, seeks govt push

Axis Bank launched its digital invoice discounting platform, Invoicemart, to improve access of funds to micro, small and medium sector enterprises (MSMEs). Invoicemart is a platform created by A.TREDS, a joint venture of Axis Bank, India’s third-largest private bank, and Mjunction Services, one of the largest B2B e-commerce company. Kalyan Basu, MD & CEO of Invoicemart thinks that digital factoring as a business can get a further boost if the government pushes the public sector MSMEs to get on the platform.

In November 2015, RBI had given an in-principle approval to three entities to set up TReDs (Trade Receivables Discounting System). The other two entities are — Mynd Solutions (Gurgaon) and NSE Strategic Investment Corporation and Small Industries Development Bank of India (Mumbai).

Source: http://www.moneycontrol.com/news/business/companies/axis-bank-launches-digital-invoice-discounting-platform-seeks-govt-push-2330445.html

Global Trade Finance Market Size, Status and Forecast 2022 – BNP Paribas, Citigroup, HSBC, Commerzbank, UniCredit, SunTrust Bank

This report studies the global Trade Finance market, analyzes and researches the Trade Finance development status and forecast in United States, EU, Japan, China, India and Southeast Asia. This report focuses on the top players in global market.

Brooklyn, NY — (SBWIRE) — 08/04/2017 — The report on the global Trade Finance market is a technical and competitive overview on the current state of Trade Finance market, covering various aspects such as product definition, financial revenues, investments, economy segmentation and developments based on chief market parameters, distribution channel, supply chain analysis, and the prevailing vendor landscape. It compiles exhaustive information sourced via proven research methodologies. The information thus compiled is presented in a logical chapter-wise format. It is also interspersed with relevant graphs and tables to enable readers get a better perspective of the global Trade Finance market.

Read more: http://www.digitaljournal.com/pr/3439423#ixzz4ot7Z71hk

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Above news update and trends are sourced from internet and are purely meant for reading on the related subject and for information. Adam Smith Associate is not responsible for any of the content and nor it is meant for any commercial benefits

 

Trade Finance News Updates & Trends Around The World

Do more to boost Islamic trade finance

AS the World Trade Organisation (WTO) reaffirmed commitment to its Aid for Trade initiative at its 2017 Global Review in Geneva this month, the outlook for global trade over the next two years is indeed mixed.

WTO is forecasting that global trade will expand by 2.4 per cent this year and between 2.1 to four per cent next year, reflecting the continued uncertainty and risks associated with a stuttering global economy underpinned by low commodity prices, albeit slightly improving this year, which in turn has had a dampening effect on trade finance.

Trade and SMEs (small- and medium-sized enterprises) are regarded as the backbone of any self-respecting economy. Trade is a significant determinant and function of sustainable development. Not surprisingly, the theme of WTO’s Geneva gathering was “Promoting Trade, Inclusiveness and Connectivity for Sustainable Development”.

Source: https://www.nst.com.my/opinion/columnists/2017/07/261175/do-more-boost-islamic-trade-finance

A GAP IN GLOBAL TRADE FINANCE OF AROUND $1.6 TRILLION PER YEAR

Latest survey results and analyses by the Asian Development Bank (ADB) point to a gap in global trade finance of around US$1.6 trillion annually—much of it in developing markets, particularly in Asian developing countries. The concern is that, according to “2017 Rethinking Trade & Finance”, the latest report of the International Chamber of Commerce (ICC): “It is increasingly clear that banks will be unable to materially close this gap in Trade Financing, and that there is a misalignment in the availability of funds and liquidity”.

With worldwide trade developing at a fast speed, trade finance is the “oil in the engine” of international commerce, and tool number one for treasury managers. The banking sector has recovered from the last financial crisis, and liquidity seems to no longer be an issue. 

Source: https://corporatefinance.co/finance/gap-global-trade-finance-around-1-6-trillion-per-year/

Banking Commission Survey confirms trade finance supply/demand imbalance

The International Chamber of Commerce (ICC) Banking Commission has released its 2017 report entitled Rethinking Trade and Finance. Based on the Global Survey on Trade Finance – with 255 responses from banks located in 98 countries, as well as insight and commentary from expert contributors – the report is the most comprehensive gauge of the trends and outlook of the global trade finance industry.

Now in its ninth year – 2017’s Survey marks a significant change in both emphasis and presentation. The aim is to provide both enhanced context – highlighting the potential strategic and tactical implications for the industry – and to be more forward looking. The approach is aided by the launch of a new Editorial Board comprising senior specialists and practitioners, supported through contributions from a wider range of partners across global trade.

The Report – emphasising ICC’s and the Banking Commission’s support of open, rules-based and inclusive multilateral trade – encompasses four major sections of content linked to the pillars of the Banking Commission’s strategy. It focuses on the state of the trade finance market; trade and supply chain finance; policy, advocacy and inclusiveness around global trade; and digitalisation and the state of FinTech. The 2017 Survey’s findings show that:

  • Some 61% of banks report more demand than supply for trade finance in the global market. ICC Banking Commission and the Asian Development Bank estimate the level of unmet demand for trade finance stands at over US$1.6 trillion a year – a figure now officially recognised by the United Nations General Assembly.
  • Only a minority (21%) see traditional trade finance showing growth in the future. However, overall trade finance revenues have increased, with ICC partner The Boston Consulting Group’s trade finance model (included in the report) predicting revenue growth of around 4.7% a year.
  • Over 68% of respondents point to compliance and regulatory requirements as having the highest adverse impact on trade finance in the short-term, while only 11% pointed to capital constraints as a matter of significant concern.
  • Some 50% expect most of trade flow processes to be digitised by 2027 – while an almost equal portion expect the evolution to take from 10-25 years. In addition, nearly 44% of respondents identify digitalisation and technology as priority areas of focus – including FinTech and fast-emerging platforms.
  • While there is optimism with respect to the digitalisation of trade finance, only 12% of respondents perceive a degree of market uptake and nearly 40% see limited progress in this area – with almost 18% reporting that technical capabilities and technology are ahead of trade finance business practice.
  • The discourse around FinTechs is evolving from competition to collaboration, with only 1.4% of respondents viewing the competitive offering of FinTechs as a threat to banks’ positions as the key providers of trade finance.
  • More than one-third of respondents consider supply chain finance a high priority and predict significant growth, and over 21% view it as under analysis and consideration.
  • Over 57% report an improvement of their operational risk management and reduced error rates, while only 2.7% note a slight deterioration.
  • Some 46% identify multinational and large corporates as the highest priority client segment for their trade finance business, with a quarter favouring middle market clients and less than 20% identifying Micro, Small and Medium Enterprises (MSMEs).
  • Some 57% of respondents believe traditional trade finance will exhibit little or no growth – while 22% think it will decline outright year-on-year.
  • Cost control pressures are considered the biggest challenge facing trade finance units. These are cited by 23% of respondents, followed closely by the availability of specialist skills (21%), and limits posed by traditional technologies (18%).
  • The report highlights the key role that correspondent banks play in global trade and economic activity, with IMF data indicating that the volume of correspondent banking relationships grew by almost 30% between 2011 and 2015.

Source: https://iccwbo.org/media-wall/news-speeches/banking-commission-survey-confirms-trade-finance-supplydemand-imbalance/

Commerzbank steps up focus on trade finance transformation

Commerzbank is to work with the Fraunhofer-Institute for Material Flow and Logistics (IML) in Dortmund to test and develop new scenarios for digitisation of trade and supply chain finance using distributed ledgers and the Internet of Things.

Commerzbank says new concepts in digital trade finance based around distributed ledger technology, IoT and smart contracts constitute the basis for new trade ecosystems, new supply chain finance concepts, faster transaction processing and new solutions in working capital management.

Bernd Laber, group executive trade finance & cash management corporate clients, Commerzbank, comments: “We are working on several projects and in a number of consortiums also with other international banks on the digitisation of bank products and bank services, and on applications for blockchain technologies. As a corporate bank the focus on future supply chains of our customers is of paramount importance and we will develop this in co-operation with Fraunhofer Institute.“

Source: https://www.finextra.com/newsarticle/30785/commerzbank-steps-up-focus-on-trade-finance-transformation

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Above news update and trends are sourced from internet and are purely meant for reading on the related subject and for information. Adam Smith Associate is not responsible for any of the content and nor it is meant for any commercial benefits

Trade Finance Updates From Around The World

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

Source: http://www.pymnts.com/news/b2b-payments/2017/uk-recruits-big-banks-for-sme-trade-finance/

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.

Source: https://www.finextra.com/blogposting/14291/digitalising-trade-finance-the-time-to-act-is-now

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.

Source: https://inc42.com/resources/growth-cryptocurrency-india/

The Upside to Trade Finance Advisory

 

Popular search engines are excellent examples, with over 75% annual earnings before five decades. I ask that you explore our site, which provides rich info on APICORP’s history, strategy, activities and achievements, and valuable industry research. Here you’ll find some helpful information about ways to mitigate risks whenever you are in a global trade.

Letter Of Credit

Even during intervals of low oil prices and financial crises, we’ve efficiently facilitated the access to capital for the business. It’s important to know about the further costs related to making use of a letter of credit.

Many emerging markets provide opportunities which you cannot get in the country anymore. Through the years, the energy industry in the area has grown to play a critical role in the world economy.

Trade Financing

The company buying the receivables is known as a factor. So as your company grows so does the quantity of funding that is available to you. Trade finance is related to the procedure for financing certain activities related to commerce and worldwide trade.

If you are worried about bad debts, many discounting companies can supply a facility that includes bad debt insurance policy protection for extra security. But if you’re using traditional loan and overdraft facilities that the bank won’t increase, then such a facility will give a solution for cash flow.

Stocks & Warehouses

There are a few circumstances where overpayments can be arranged. However, this kind of advance is going to be determined on the grounds of the way the facility was maintained and if a successful and dependable transactional history was built up.

This scenario would be exactly the tip of the iceberg on how best to get started researching a global stock. Moreover, you would like to be aware of just how much time you are eager to spend researching investment opportunities. The entire idea with stock timing is to learn the length of time you have until you’ll really want the money.

All You Need Is

Because we take time to understand your company, you may take a break assured your facilities will be structured around the authentic enterprise you do, taking into consideration your distinctive requirements at several phases of your trade cycle. It is comparable to those people who fear others because they don’t attempt to understand them. I think it is suggested to begin investing globally because lots of people have a fear of the unknown.

After you start to formulate what risk you’re comfortable with and also your long-term goals for investing, the next thing to do is to recognize a strategy that fulfills your requirements. Our goal is to make certain that businesses have the sales-financing tools required to drive sales and better their competitiveness.

Our capacity to secure our customers’ trust has earned us some substantial recognition. The important thing is to understand what risk levels you’re comfortable with and the best target of your investing strategy. For any business the prospect of terrible debt will stay a problem.

We are aware that achieving great effects in the world market needs a thorough comprehension of best practice principles. We also have developed quite a few trade tools which were designed to aid businesses since they learn more on the topic of international trade.

The Advantages of Trade Finance Advisory

In the long run, through this program, the country is going to have sizeable manufacturing base, which then will make gigantic growth and developmental opportunities for all participants. The city provides a good quote that could encompass our MBA international experience in addition to investing in an international economy. The discounter will subsequently continue to supply you with as much as 85% of the worth of new sales invoices, normally within one day of you raising them. It is represented in more than 30 countries worldwide and provides an extensive selection of insurances, provision services and products.

Adam Smith Associates is a popular trade finance advisory company. We offer excellent services with it come to finance advisories. Although there are many other companies out there, nothing compares the quality of their services.

It is always important to search for the best trade finance advices you can get before making any investment. You should spend your assets wisely.

For more information on what you can gain by working with us, contact us today!

 

US 30 Years Treasury Bonds – Technical Analysis

The 30 year bonds are still holding up and in wave v of C up. The bonds might make one more push higher at least and get closer to the upper end of the channel before we get a meaningful trend reversal from the rising trend in bonds.

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

 

Dow Utilities – Technical Analysis

The Dow Utilities chart is a rare one we look at. But here it is. Interesting was that it just touched the trendline from the 2000-2008 highs at the recent high. The entire period fits a channel on a arithmetic scale.

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

 

S & P 500 – Technical Analysis

S&P is in wave 5 of 5 and near the upper end of a rising channel on the monthly chart [arithmetic scale]. The next trend reversal would end the 8 year long bull market. Wave 1 of 5 was 5 months and 3 took 4 months, we are in the 3rd month of wave 5 and waiting for the next turn. Till then…

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

 

Currency And Dollar – Technical Analysis

USDBRL

Time to consider the bull case for the USDBRL again. The real has taken support on its long term trendline and started to push higher. The wave count longer term is indicative of a 5th wave that can go to a new high. 3.16 is the lower end of the channel that is acting as the pivot for the trend. 4.11 is the mid channel level.

Dollar Index

The dollar index took support on the 20dma at 97.07 and should be heading higher towards the 38.2% retracement mark at 98.19

USDINR

USDINR – came very close to the reverse channel. That means take a line of the tops and then take a parallel trendline and put it to the lows. That was at 63.50. The upper end of the channel is at 90, 5=1 is at 85. So the risk reward favors USDINR bulls. I have been marking the rise from the 2008 low as a impulse long term and we should be about to start wave 5 of the move next based on channels.

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

Commodity – Technical Analysis

LEAD MCX

Lead broke past the 40dema in wave iii minor degree. Levels to watch are support at 137. 38.2% retracement at 144, 50% at 148 and 61.8% at 152

ZINC MCX

Zinc broke out of the falling channel at 165 which should act as a support and the next set of retracement levels are 172-177-182

COPPER MCX

Copper MCX – closed above the averages as they hold above the falling trend since FEB. Momentum turned positive and 362.80 is the recent low support and 385 is the next resistance

Wheat CBT

Touched the upper end of a falling channel after a corrective advance and thus is open to dropping again from 471 to the lower end of the channel near 300.

 

COFFEE CSCE

Coffee prices have not yet bottomed and had a big down day yesterday. So chances are they will slip to the neckline near 100. While this level held the last few times we need to watch this time. Agro prices in general are falling everywhere, in India and abroad and no stopping it yet.

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

 

Trade Finance News Trends

Trade finance modernization turns towards blockchain

A study of European treasurers by working capital fintech C2FO finds that 75% are focusing on investing in trade finance technology in 2017. Colin Sharp, senior vice-president, EMEA at C2FO, says the shifting macroeconomic environment is pressuring corporates to refocus their efforts on trade finance: “Treasurers are facing a lot of uncertainty, both from the US and around Brexit. This is putting stress on the supply chain, with demand increasing and decreasing. Treasures want the ability to use their assets to make returns and give some certainty.

Source:https://www.euromoney.com/article/b12khnzp4pq9p5/trade-finance-modernization-turns-towards-blockchain

ICC Academy unveils new e-course on digital trade finance and fintechs

The educational arm of the International Chamber of Commerce (ICC), the ICC Academy, has launched an advanced-level e-course entitled “Digital Trade Finance and Fintechs.” The curriculum is aimed at professionals working in banks, corporations, financial institutions, insurance companies and financial technology (fintech) firms.

Source: https://iccwbo.org/media-wall/news-speeches/icc-academy-unveils-new-e-course-digital-trade-finance-fintechs/

Targeting Seamless Trade Finance Operations

As Nigerians look forward to better days when the economy would have stabilised and emerged from recession, integrated digital payments company, Interswitch Group, has struck a deal with Misys, a leading provider of lending, treasury, trading and risk management solutions to ease trade finance operations and improve service delivery as far as local banks are concerned.

Source: https://www.thisdaylive.com/index.php/2017/06/22/targeting-seamless-trade-finance-operations/

SBI cautious in India but looking to increase corporate lending in Europe

State Bank of India is trying to increase corporate lending in Europe. SBI Frankfurt, which has the status of an independent bank in Europe, has traditionally lent for trade financing but now wants to fund Indian business houses in Europe and European firms in India.

In the recent past, there has been a conscious shift in strategy to lend more to European companies, according to an executive with SBI Frankfurt. Now nearly 50 per cent of the bank’s non-trade finance business portfolio consists of syndicated loans to European companies. SBI Frankfurt’s growth in business over the next few years would come from lending to European firms, confirmed another bank executive.

Source: http://www.business-standard.com/article/finance/sbi-cautious-in-india-but-looking-to-increase-corporate-lending-in-europe-117061700260_1.html

 

Maersk now offering trade finance operation for customers

Danish liner company Maersk Line has expanded into the trade finance business by allowing customers to finance their operations as long as they are shipping with Maersk.

The financing scheme works because Maersk has a rich trove of customer information from which to base a decision on the customer’s creditworthiness, according to the Copenhagen-based company. This enables companies to manage their shipping and finance needs with one provider, rather than using one vendor for shipping and another vendor—normally a bank—for trade finance, Maersk said.

http://www.freshplaza.com/article/177338/Maersk-now-offering-trade-finance-operation-for-customers

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd