Trade Finance News, Updates & Trend Across the Globe

Are Logistic Companies Waking up to Trade Finance?

The logistics industry has a complex structure of players that enable products sourced globally to get to the last mile destination. There are freight forwarders, Regional and Global Ocean Carriers, air freight, Non Vessel owning 3PLs and others that provide a range of services.

Most logistic providers have not progressed with supply chain finance solutions. Until recently, UPS was the only game in town. Few people know that UPS bought a bank back in 2001, First International Bancorp, and got into the factoring business. Today, they focus on three finance solutions:

Source: http://spendmatters.com/tfmatters/logistic-companies-waking-trade-finance/

Hong Kong, Singapore to Collaborate on DLT Trade Finance Platform

Hong Kong’s banking regulator and de facto central bank has announced a new collaboration with Singapore aimed to digitize trade finance using distributed ledger technology (DLT).

Making the announcement today at a fintech event, the CEO of the Hong Kong Monetary Authority (HKMA), Norman Chan Tak-lam, said the joint project with the Monetary Authority of Singapore (MAS) will focus on a DLT proof-of-concept called the Hong Kong Trade Finance Platform (HKTFP).

Already having seen involvement from seven Hong Kong-based banks, the project is designed to digitize trade documents and reduce risk and fraud in the industry. Ultimately, the authorities plan the creation of a cross-border infrastructure that would serve as a bridge between HKTFP and a similar trade platform in Singapore.

Source: https://www.coindesk.com/hong-kong-singapore-to-collaborate-on-dlt-trade-finance-platform/

Corda for Cargo: R3 Inks Another Trade Finance Partnership

In its latest effort to use distributed ledgers to modernize the paper-intensive business of trade finance, R3 has agreed to work with Bolero on an electronic bill of lading service.

Announced Monday, the partnership follows R3’s pilot with Japanese financial giant Mizuho to digitize letters of credit and bills of lading, and a trade finance app developed by 11 international banks using the consortium’s Corda platform.
R3’s newest partner, the U.K.-based Bolero, already offers an electronic bill of lading and title registry, with a common legal framework, but the reach of that service will be extended by developing an oracle on Corda, the companies said.
Part of R3’s broader mission is to “help connect digital islands,” Todd McDonald, a co-founder and head of partnerships at R3, told CoinDesk.

Source: https://www.coindesk.com/corda-cargo-r3-inks-another-trade-finance-partnership/

Global Trade Finance Market Research Report 2017-2022

Bharat Book Bureau announces the addition of the report “Global Trade Finance Market Research Report 2017-2022 by Players, Regions, Product Types & Applications [https://www.bharatbook.com/business-market-research-reports-952808/global-trade-finance-players-regions-product-types-applications.html ] ” to its offering.

Summary

The global Trade Finance market is valued at XX million USD in 2016 and is expected to reach XX million USD by the end of 2022, growing at a CAGR of XX% between 2016 and 2022. This report offers an overview of the market trends, drivers, and barriers with respect to the Trade Finance market. It also provides a detailed overview of the market of different regions across United States, Europe, China, Japan, India, Southeast Asia and Others. The report categorizes Trade Finance market by By Activity, By Scope, and application. Detailed analysis of key players, along with key growth strategies adopted by them is also covered in this report on Trade Finance market is valued at XX million USD in 2016 and is expected to reach XX million USD by the end of 2022, growing at a CAGR of XX% between 2016 and 2022.

Source: https://www.marketwatch.com/story/global-trade-finance-market-research-report-2017-2022-2017-10-25-102033131

BNY Mellon becomes partner bank in ADB’s Trade Finance Program

BNY Mellon has become a partner bank in the Asian Development Bank’s (ADB) Trade Finance Program (TFP).

The agreement, made official at a signing ceremony during Sibos, covers a range of trade finance instruments, including loans and guarantees, and will allow BNY Mellon to continue its strong growth in Asian trade services by facilitating support to a wider range of customers, including small- and medium-sized enterprises (SMEs).

Backed by the ADB’s AAA credit rating, the TFP enables companies throughout Asia to engage in import and export activities through the provision of loans and guarantees by ADB’s partner banks. Since 2009, the program has supported over 9,200 SMEs across developing Asia – totaling over 13,000 transactions valued at over $25.5 billion. Sectors range from commodities and capital goods, to medical supplies and consumer goods.

Source: https://www.fx-mm.com/news/70907/bny-mellon-becomes-partner-bank-tfp/

Africa drives Access Bank’s trade finance growth

The Access Bank UK Limited, a wholly-owned subsidiary of Access Bank Plc, a Nigerian Stock Exchange-listed company, has witnessed strong growth in its trade finance business linking the Middle East region with Nigeria and other sub-Saharan markets, Jamie Simmonds, CEO of The Access Bank UK told Gulf News in an interview.

The bank which began its Dubai operations from the Dubai International Financial Centre (DIFC) in 2015 said the DIFC office has become a regional business hub for the bank, attracting trade finance deals from across the Middle East and from Asia.

The bank works on a five-year plan and matches the liability side of the balance sheet with planned asset growth. In addition to the capital raised from its parent, the liability side is significantly supported by customer balances, Simmonds said.
Source: http://gulfnews.com/business/sectors/banking/africa-drives-access-bank-s-trade-finance-growth-1.2106124

Trade finance needed to foster intra-African trade

East and southern Africa leads in intra-African trade with the highest share of between 18 and 19 percent, which reflects Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community’s (SADC) effective agenda in consolidating trade and development in Africa.
North Africa and Central Africa have the lowest share of intra-African trade of 5.3 and 2.1 percent, respectively.

This information is contained in the Trade Finance in Africa Survey Report by the African Development Bank Group published in September 2017, which tracks the changes that have occurred in the trade finance market in Africa during the period 2013-2014.

Source: https://southernafrican.news/2017/10/27/trade-finance-needed-to-foster-intra-african-trade/

De-risking in trade finance: time to act

As financial authorities express concern about de-risking in correspondent banking, a similar phenomenon is emerging in trade finance, driven by the high costs of KYC compliance.

There is a danger that some banks in some regions, such as Africa, will have difficulty connecting to the trade finance world. Banks need to collaborate to help corporate clients to connect with their customers and address the still unsatisfied demand for international trade services.

De-risking is a hot topic in the cash clearing universe as some correspondent banks withdraw from certain countries, currencies, or products to control costs and risk. At the same time, de-risking is becoming a phenomenon in the trade universe for the same reasons.

Banks’ correspondent relationships are conducted via Swift’s global network, which numbers 11,000 banks in 200 countries. Via Relationship Management Application (RMA) keys, banks can connect with each other. The RMA is a Swift-mandated filter that enables financial institutions to define which counterparties can send them FIN messages. Any unwanted traffic is blocked at the sender level, reducing the operational risks associated with handling unwanted messages and providing a first line of defence against fraud. RMA Plus, a more granular version of RMA, goes one step further by letting institutions specify which message type(s) they want to receive from, and send to, each of their counterparties.

Source: http://www.bankingtech.com/1034352/de-risking-in-trade-finance-time-to-act/

Hopes raised as first African bank joins trade finance fintech platform

South Africa’s Standard Bank has become the first African bank to join CCRManager’s digital trade finance platform, a global project to ease trade and supply chain finance distribution.

CCRManager (CCRM), a fintech firm backed by the Monetary Authority of Singapore, launched its platform earlier in the year, as previously reported by GTR.

Thirteen banks across 11 countries are already members of the platform, transacting live deals. These include Bank of China, DBS Bank, ICICI Bank, Swiss Re Corporate Solutions, UniCredit, BBVA, Yes Bank and now Standard Bank. The remaining banks are based in Japan, Hong Kong, Middle East and UK, but have not been named.

Source: https://www.gtreview.com/news/africa/hopes-raised-as-first-african-bank-joins-trade-finance-fintech-platform/

Sponsored roundtable: Assessing India’s trade finance scene

GTR: The current government of India has been taking steps to make trading and transacting simpler and easier. How do you assess the progress that’s been made on that front?

Somasekhar: In India, we have a robust foreign trade policy compared to three decades earlier. When we see the foreign trade policy, many of the items are becoming freely importable. The documentation part of the foreign trade policy has gradually been simplified over a period of time. Previously, we had around 21 to 25 documents that a customer had to submit to the authorities. Today, it has been reduced to seven or eight documents. There has been simplification of documents over the past several years in this regard.

One issue is with physical documents. Although many of the banks have completed their digitalisation process, the synchrony with customs was not available and is now being looked into. The customer gives the documents to the bank. In some cases, the bank has an interface with the customer systems, but banks in turn do not have an interface with the customs offices. This maintains the need for the physical documents to ensure that we adhere to the guidelines of customs or the regulator.

Verma: The Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS) are great developments on that front. What did not happen in the last five decades has happened in the last two and a half years. It is a great change that I see. While there are a few teething issues, we believe that it is a great step in the right direction.

Somasekhar: We agree it is a positive step. Compared to 20 or 30 years back when banks were generally dealing in physical documents today, we are able to at least see them in the system once the data is uploaded by customs. We can be sure that goods have come into the country or gone out of the country. But still, there are some bottlenecks. For example, when goods are delivered in manual ports, there is no entry in the EDPMS or the IDPMS immediately but only at a later date.

Source: https://www.gtreview.com/news/asia/sponsored-roundtable-assessing-indias-trade-finance-scene/

Trade Finance News, Updates & Trends Across The World

Banks team up with IBM in trade finance blockchain

While International Business Machines (NYSE:IBM) is not typically viewed as a tech company at the bleeding edge, blockchain is one area where Big Blue is leading the way. A recent survey of company founders, executives, managers, and IT leaders pegged IBM as the overwhelming leader, a result that bodes well for IBM’s nascent blockchain business.

Source: https://www.fool.com/investing/2017/10/05/more-banks-join-ibms-blockchain-trade-finance-proj.aspx

AfDB releases second Trade Finance in Africa survey report, “Overcoming Challenges”

The African Development Bank (AfDB) has released its second Trade Finance in Africa survey report: “Trade Finance in Africa: Overcoming Challenges”. Building on the findings of the maiden 2013 survey, this new report (covering the period 2013–2014) goes even further to gauge other aspects of bank-intermediated trade finance, such as the challenges encountered by SMEs and first time trade finance clients. The report is therefore based on the combined data from the 2013 and 2015 surveys. The report’s main findings are outlined below:

The value of bank-intermediated trade finance in Africa in 2013 and 2014 is estimated at US $430 billion and US $362 billion, respectively. Put differently, banks support about one third of total trade in Africa.

Source: http://www.worldstagegroup.com/worldstagenew/index.php?active=news&newscid=38747&catid=3

Standard Chartered wraps up new trade finance partnerships

Standard Chartered has announced a new set of partnerships with TradeIX, for the digitisation of trade finance and Infor to put supply chain information on the cloud. The bank has worked with TradeIX to roll out a new open blockchain platform for trade finance, allowing corporates a “connected and secure”

Source: https://ibsintelligence.com/standard-chartered-wraps-new-trade-finance-partnerships/

Ghana concludes USD 1.3 billion trade finance deal

Ghana’s Cocoa Board has concluded a USD 1.3 billion trade finance deal, notching up a quarter-century of such deals.

Ghana Cocoa Board  – known as Cocobod – has successfully concluded the arrangement of a USD 1.3 billion pre-export receivables backed trade finance facility, marking a quarter century of such deals since the first time of going to market in 1993.

The facility followed the instruction of a range of banks, working alongside Ghana International Bank, as initial mandated lead arranger, to carry out the trade financing. Rabobank, Crédit Agricole, Natixis, Standard Bank and Sumitomo Mitsui all acted as bookrunners.

They were joined by a group of supporting banks, such as Bank of China, Tokyo-Mitsubishi UFJ Bank, Commerzbank, the Industrial and Commercial Bank of China, Rand Merchant Bank, Société Générale, ABN AMRO, Standard Chartered Bank, Barclays Bank and others as arrangers.

Source: https://www.africanlawbusiness.com/news/7640-ghana-concludes-usd-1-3-billion-trade-finance-deal

“No one tells you that trade finance can be really fun”

Invest more in young talent: when it comes to how the trade finance industry can best tackle its gender bias, Emma Clark’s message is clear. In this, the next edition of GTR’s series about inspirational women in trade finance, Sanne Wass talks to Falcon Group’s head of business development.

For Emma Clark, if things get a little too easy, they become dull. In her professional life, she heads up Falcon Group’s global business development, a role in which she often finds herself racking up the airmiles, heading out into the world to help companies expand to new export markets. She says she loves her job, because she helps “solve problems that no one else can fix”.

Source: https://www.gtreview.com/news/global/no-one-tells-you-that-trade-finance-can-be-really-fun/

Global Trade Finance Market 2017- BNP Paribas, Citigroup, HSBC

Worldwide Trade Finance Market 2017presents a widespread and fundamental study of Trade Finance industry along with the analysis of subjective aspects which will provide key business insights to the readers. Global Trade Finance Market 2017 research report offers the analytical view of the industry by studying different factors like Trade Finance market growth, consumption volume, market trends and Trade Finance industry cost structures during the forecast period from 2017 to 2022.

Trade Finance market studies the competitive landscape view of the industry. The Trade Finance report also includes development plans and policies along with manufacturing processes. The major regions involved in Trade Finance Market are (United States, EU, China, and Japan).

Global Trade Finance Market 2017- BNP Paribas, Citigroup, HSBC

Trade Finance Market Size, Share, Trends Analysis and Growth Forecast by Product Type and Application By 2022

Trade Finance Market Report covers the present scenario and the growth prospects of the Trade Finance Industry for 2017-2022. Trade Finance Market Report contains industry overview with growth analysis and futuristic cost, revenue, demand and supply data. The research report introduce incorporates analysis of definitions, classifications, application and industry chain structure. Besides this, the Trade Finance Market report also consists of development trends and key region’s development status. The report covers the market landscape and its growth prospects over the coming years.

Trade Finance Market Size, Share, Trends Analysis and Growth Forecast by Product Type and Application By 2022

2017 Rethinking Trade & Finance

With 255 responses from banks located in 98 countries, as well as various contributions from leading experts in the field, “Rethinking Trade & Finance” is the most extensive gauge of the trends and outlook of the global trade finance industry.  It aims to provide insight and analysis to help readers formulate strategy and make decisions that will advance the evolution of global trade.

The 2017 edition comes at a transformational moment in the history of trade and the global economic system. The report has its roots at the peak of the global financial crisis, and has since earned its place as a leading publication on the subject of trade, finance and economic inclusiveness.

The Report 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 digitisation and the state of FinTech.

2017 Rethinking Trade & Finance

Access to trade finance

Engaging in world trade holds enormous potential for business yet many companies, especially small- and medium-sized enterprises (SMEs), depend on access to banking services in order to unlock new markets. Trade finance allows companies to mitigate the risks associated with importing or exporting goods and services, permitting world trade to flow in a predictable and secure manner.

Trade finance has been a key catalyst of the expansion of international trade in the past century, and bank-intermediated transactions now represent more than a third of world trade, equal to trillions of dollars each year.

More than simply maintaining our international trading system though, trade finance is essential for the future outlook of global growth. SMEs are the backbone of the global economy, representing around 95% of the world’s companies and 60% of private sector jobs, and play a great role in promoting employment and social cohesion.

The supply or shortage of trade finance hurts SMEs the most, and thus has negative knock-on effects for economies and families across the globe.

Access to trade finance

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.

 

News & Updates Around The World On Trade Finance

HashCash Redefines Global Trade Finance with HC TRADE built on Ethereum Blockchain

HashCash® today introduced HC Trade Finance, a blockchain technology product that brings a breakthrough for global banks and financial organizations in the business of financing corporate trade.

Traditionally, the business processes around financing a corporate trade activity is a paper intensive process. The risk of fraud is typically high for the financial organization underwriting it. Manual processing of documents also leads to reconciliation or book keeping inconsistencies and audit hassles. This soars up cost for the financial organization and creates barriers to supply chain financing for corporates.

All this in turn leads to inefficient working capital management and affects the overall economic output.

Source: https://www.benzinga.com/pressreleases/17/08/p9958908/hashcash-redefines-global-trade-finance-with-hc-trade-built-on-ethereum

Deutsche Bank to beef up trade finance in emerging markets

Deutsche Bank plans to beef up its trade finance business in the developing world, creating new jobs and investing in technology, it said on Wednesday.

The focus is on Africa, Latin America, the Middle East, Asia, and central and eastern Europe, Germany’s largest bank said. It plans to hire between 20 and 30 people for those locations and will invest “a middle two digit million euro figure” in information technology over the next three years, it said.

Daniel Schmand, who heads the bank’s trade finance division, told journalists that he sees unmet demand for trade financing in particular for small and medium-sized companies.

Source: https://www.reuters.com/article/us-deutsche-bank-emerging-idUSKCN1AW0WP

Video: What to do and not to do in trade finance transactions

https://www.txfnews.com/News/Article/2938/Video-What-to-do-and-not-to-do-in-trade-finance-transactions

Bangladesh secures trade finance and infra packages

Development banks have extended infrastructure and trade finance packages to Bangladesh. The Asian Development Bank (ADB) approved a US$200mn loan package to improve the country’s urban infrastructure, while the International Finance Corporation (IFC) has signed a US$40mn working capital loan with Bank Asia, a local lender.

In the case of the ADB, the finance will fund 600km of road builds and improvements, 300km of drains and install 180km of pipes for water supply, with 60,000 metered household connections. It will fund priority infrastructure in the pourashava (municipalities) of Bangladesh, where populations are dense and facilities are generally basic and overstretched.

Source: https://www.gtreview.com/news/asia/bangladesh-secures-trade-finance-and-infra-packages/

UN endorses ICC Uniform Rules for Forfaiting

In a historic moment, the ICC Uniform Rules for Forfaiting—ICC Publication no. 800 (“URF 800”)—were officially endorsed by the United Nations Commission on International Trade Law (UNCITRAL) in its 50th plenary session held in Vienna on 14 July 2017.

Forfaiting is a trade financing technique based on without recourse discounting of an instrument representing an exporter’s receivables payable at a future date, such instrument evidencing a payment claim or a debt obligation of an importer or a bank / financial institution pursuant to a letter of credit, standby letter of credit, guarantee, aval, bill of exchange or a promissory note created under an export transaction.

The URF 800 are the first ever global rules for forfaiting—the result of three-and-a-half years of joint effort by ICC and the International Trade and Forfaiting Association (ITFA)—developed after taking into account feedback from major trade finance banks, forfaiting companies and exporters. The aim of URF 800 is to create a standard set of rules that can be applied within the forfaiting markets worldwide.

Source: https://iccwbo.org/media-wall/news-speeches/un-endorses-icc-uniform-rules-forfaiting-urf-800/

HSBC and IBM develop cognitive trade finance tool

HSBC and IBM have developed a cognitive solution to automate and digitise trade finance documentation.

The solution, which is already in use in Hong Kong and the UAE, uses IBM robotics technology to analyse documents, digitising and extracting the relevant data before feeding it into HSBC’s transaction processing systems.

The aim is to remove the labour intensity from trade finance. HSBC’s global trade and receivables financing (GTRF) team processes more than US$500bn in documentary trade each year, meaning more than 100 million pages must be manually reviewed and processed.

Source: https://www.gtreview.com/news/global/hsbc-and-ibm-develop-cognitive-trade-finance-tool/

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.

However, banking regulations have pushed banks to fund the needs of supposedly less risky multinationals and large corporates in developing countries. Risk-weighted asset regulation within Basel II, along with capital-adequacy ratio or solvency ratio requirements, have driven banks out of the micro, small and sometimes even medium-sized enterprise (MSME) segment. Banks are being challenged by capacity constraints, developed protectionist rhetoric coupled with trade-restrictive initiatives in key G20 economies, which are having a dampening effect on expectations of trade-driven growth and leading to a slowdown in import-based economic activity globally.

Source: https://corporatefinance.co/finance/gap-global-trade-finance-around-1-6-trillion-per-year-2/

Maersk seeks role in trade finance as banks retreat

Maersk, the world’s biggest container shipper, is venturing into trade finance, as it seeks to fill a lending gap left by indebted banks pulling out of the crisis-hit shipping industry.

Moving into traditional bank territory and further down the shipping value chain, Maersk Line, part of A.P. Moller-Maersk , is offering to finance shipments and remove the paper trail from financing deals.

Maersk says it has no need to ask for collateral – one of the biggest headaches for banks and customers in trade finance deals – because it is carrying the goods on its vessels.

Source:  http://timesofindia.indiatimes.com/business/international-business/maersk-seeks-role-in-trade-finance-as-banks-retreat/articleshow/60087830.cms

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 Around The World

Eleven banks have passed a major milestone in the digitisation of documentary trade finance.

They have developed a prototype application on R3’s distributed ledger platform, Corda, that has the potential to significantly reduce inefficiencies and costs by streamlining the processing of sight letters of credit.

Bangkok Bank, BBVA, BNP Paribas, HSBC, ING, Intesa Sanpaolo, Mizuho, RBS, Scotiabank, SEB and U.S. Bank have been collaborating with R3 and technology partner CGI over the last year on numerous trade finance projects, building and testing applications. Using lessons learnt from these projects, the group has now developed a trade finance application on Corda that incorporates shippers and carriers. Several R3 member institutions now intend to pilot the platform with the goal of making it widely available in 2018.

Source: https://www.finextra.com/pressarticle/70297/eleven-banks-develop-trade-finance-app-on-r3s-corda-dlt-platform

HSBC and IBM use robotics to speed up trade financing

HSBC has partnered with technology group IBM to bring the traditionally paper-heavy trade financing process into the digital age.

The initiative is the latest effort to make trade transactions, which HSBC said can involve as many as 15 different 40-page documents, more efficient.

The UK bank is working with IBM to use advanced robotics to identify, digitise and extract data from such documents and feed this into its own transaction processing systems.

Natalie Blyth, HSBC’s head of global trade and receivables finance, said: “By digitising this process we will make transactions quicker and safer for both buyers and suppliers, leading our industry forwards, and we will reduce compliance risks through an enhanced ability to manage huge volumes of data.”

Source: https://www.fnlondon.com/articles/hsbc-and-ibm-use-robotics-to-speed-up-trade-financing-20170810

HFC Boosts Trade Finance

Knowledge on trade finance is very important for Banks.

This was the comment made by the acting chief executive officer HFC Bank in Fiji Raj Sharma at the HFC Bank and Asian Development Bank (ADB) trade finance client seminar at Tanoa Waterfront Hotel in Lautoka yesterday.

He said the seminar would enhance the knowledge of their customers to know about trade finance facilities offered by HFC Bank. “This year we have signed an agreement with ADB under this trade finance facility,” Mr Sharma said. “This means with ADB, it gives us a window to have access to over 200 banks globally.” He added: “Trade finance facility has a lot of advantages and we as a local bank would have difficulty to setup a corresponding relationship with other banks.

“We have learnt about trade finance facilities in terms of letters of credit that could be given to the customers, opening of account.

Source: http://fijisun.com.fj/2017/08/08/hfc-boosts-trade-finance/

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

 

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 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/