According to the Global Trade Securing Future Growth report, over 60% of surveyed banks reported to have implemented or to be in the process of implementing technology solutions to digitalise their trade finance operations.
However, only 9% of banks reported that the implemented solutions have so far led to a reduction of time and costs in trade finance transactions. In what the report describes as a “reality check”, 30% of respondents say their banks remain 1-2 years away from implementing technology solutions while 7% say digitalisation is not on their agenda at all.
In the findings, 65% of respondents say that physical paper has to some extent been removed in the issuance/advising and settlement/financing of documentary transactions. A notable exception is the document verification process, where 52% of respondents say that paper has not been removed at all.
Looking ahead into the medium and longer term, only 5% of respondents consider traditional trade finance a strategic area of focus in the next 3-5 years. In contrast, 72% consider traditional trade finance a priority in the next 12 months.
Conducted annually, the ICC Global Survey report compacts a review of the trade finance industry, based on information from over 250 banks in more than 90 countries. The survey results are supported by contributions from an international array of trade and finance specialists, including experts from the World Bank, the Boston Consulting Group, and the World Trade Organization.
ICC is a business organisation working to promote international trade, responsible business conduct and a global approach to regulation to accelerate inclusive and sustainable growth.
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