Traditionally, trade finance for importers and exporters has been paper-based and fragmented, meaning that each service has been made available separately. However, in the aftermath of the global pandemic, and as technology has reached a state of maturity, the trade finance industry is looking at creating digital platforms to deliver holistic trade finance services to customers.
At Euro Exim Bank, we are heavily focused on digital service delivery and have empowered our customers to make international trade settlements through our blockchain powered, Exim Wave global settlement platform, with access to over 150 currencies. For us, this is only a first step as we look to create a seamless, comprehensive and automated digital trade finance services platform.
Already, we are able to provide most trade finance instruments such as letters of credit, bank guarantees and others digitally, where they are acceptable. However, our ultimate goal is to provide a fully-featured omnichannel digital trade finance platform.
Why it is Beneficial
- It will allow importers and exporters to keep track of all their trade finance and international trade settlement transactions in one simple, easy to use, highly accessible interface.
- Customers will be able to request for and manage paper-based and digital trade finance instruments with ease.
- Global accessibility is a key concern at this juncture, and digital technology has the power to deliver. In trade finance, reliance on paper-based systems has become potentially the key limiting factor as the global recovery gets underway.
- A transparent digital trade finance platform will allow for data collection and analytics, which will better enable trade finance service providers to understand their customers and effectively manage risk.
- Digital platforms, particularly those powered by blockchain will open the doors for open collaboration and information sharing between trade finance service providers. This will make for easier and more effective due diligence and serve to effectively mitigate the risk of fraudulent activity.
- Blockchain powered digital trade finance services platforms, through the use of smart contracts and end-to-end tracking, are making it possible for the whole process of trade finance and international trade settlement to be automated, reducing the need for human intervention.
Transforming Trade Finance
While the industry is still in the early stages of its digital journey, we at Euro Exim Bank are working hard to ensure better digital delivery and accessibility. The pandemic has encouraged countries around the world, including the G7, to change laws and transform paper-based systems into ones that can, at the very least, accommodate digital trade transactions. As a pioneer in the space of digital trade finance and building on our successful range digital trade finance and settlement products, we look forward to delivering to our customers a reliable, holistic and class-leading digital trade finance services platform in the near future.
