Mideast banks move to paperless trade finance, ICC study finds

Results from the International Chamber of Commerce’s10th Global Survey on Trade Finance indicate that the use of digital technologies and the adoption of supply chain finance methods (SCF) – which typically involve the use of an online platform – is growing in the region, despite lingering reservations about the move.

The survey, which gathered responses from more than 250 banks across 91 countries, revealed that almost 70% of respondents in the region believe the sector will grow in the next 12 months, with only 5% anticipating a slowdown. What’s more, this is indicative of a wider trend for the sector, with respondents worldwide especially positive about its future development over the next 12 months –indeed, only 27% are doubtful about the sector’s upward trend.

Some 47% of bank respondents in the region would class their implementation of technology solutions as “mature” – on par with the global average – while an additional 35% indicated this was on the agenda for the next one – two years. The survey also revealed that 59% of respondents in the Middle East believe in the potential for digital channels to impact sales volumes.

Meanwhile, some 44% of respondents in the Middle East noted that the development and deployment of digital trade and online trade platforms is a strategic priority in the next one – three years. What’s more, half of bank respondents based in the region also expect emerging technologies, such as distributed ledgers, to become an important focus for the industry in the next three – five years.

Over 40% of banks in the Middle East are planning the implementation of technology solutions into their trade finance offerings, while over 60% of respondents in the region anticipate revenue growth from SCF in the next three years.