Trade finance and supply chain finance involve highly complex, often manual and paper-based processes that haven’t benefited much from the digitalization of the industry. Hence the digitalization of international trade remains a priority for manufacturers, importers, exporters, authorities, logistics, insurers, and trade finance organizations. However, stakeholder diversity, the complexity of international supply chains, and regulations have been met with too little and too fragmented investments to automate trade. With too many different options available, a clear direction is not yet in sight.
Today, trade finance remains one of the most opportunistic areas within corporate and commercial banking to leverage DLT technology. As a result, almost every tier 1 bank is experimenting by itself or in a consortium to digitize trade.
Goals and Objectives
- Accelerate digital trade and financial supply chains to reduce cost and build new business models.
- Reduce risk by automating trust through tamper-proof, transparent, compliant systems of record.
- Develop an easily accessible, international platform to onboard other banks and corporates.
- Open new markets for companies that traditionally have not had access to traditional networks and tools. Develop shared standards and interoperability across different ledgers.
- Distributed ledger technology
- Smart contracts to reduce friction and risk
- Connected devices for asset tracking
- Digital platform and APIs
Use Case Summary
Corporates benefit from simpler management of international accounts and transactions, efficiency, transparency on pricing, services, cash flows, and new value-added services.