Global Trade Review (GTR)’s Post

The move towards digitalisation in global trade is not just a trend but a necessary evolution: one that promises to improve efficiency and reduce costs. For daily news and analysis subscribe to the www.cfopeek.com newsletter. #CFO #FinanceLeadership #Business

Ahead of SIBOS 2024, #BCG is pleased to share its Pulse Check on Trade Finance in partnership with ICC, surveying c. 200 trade finance professionals to get their perspectives on what is happening in the market. 📈 Despite current headwinds, trade finance market is expected to grow. BCG’s Global Trade Model forecasts $62B trade and supply chain finance revenue pools for 2024, with 4.8% CAGR growth through to 2033. 🛳 Shifting trade flows, margin erosion, and effective of capital treatment continue to be the biggest threats 💻 Digital is key: virtually every bank surveyed is investing in digital transformation and automation. 💾 More and more banks are undergoing core platform modernisation to future proof their systems for these digital shifts, and 75% of respondents are now opting for vendor solutions. 💎 For the first time, service quality is as important to customers as price. Of the top 5 customer priorities, 3 are directly related to service quality and expertise. 🌳 We are continuing to see traction in sustainability. 85% of respondents have or are developing propositions around sustainable trade, but only 15% are commercially scaled. BCG on Financial Institutions International Chamber of Commerce Sukand R. Vivek Batra tomasch kubiak

Embracing the #CSRD: a competitive imperative for global banks    As the EU's Corporate Sustainability Reporting Directive (#CSRD) requirements take shape, global banks headquartered outside the bloc may have a strategic incentive to get ahead of the 2029 compliance deadline for their European operations.    While the CSRD initially applies to EU companies and subsidiaries starting in 2024, the transparency it fosters could create investor pressure for similar disclosures from non-EU banks well before 2029. Proactively aligning with these rigorous sustainability reporting standards can provide a competitive edge 🌐     While the road ahead has challenges, such as overhauling data management systems and upskilling staff, the potential upsides of enhanced reputation, investor confidence, and operational efficiencies make a compelling case for global banks to embrace the #CSRD sooner rather than later. 📈    See this piece in The Banker from earlier this year for more: https://lnkd.in/e2mAubzm  

🔍 Roundtable Discussion: "Are We Doing Enough to Bridge the Trade Finance Gap?" 📅 On September 5, 2024,  in Limassol, Cyprus, the next highlight of ITFA’s 50th Annual Conference was a roundtable dedicated to exploring strategies to bridge the trade finance gap intensified by global challenges. Moderated by TFG’s Deepesh Patel, the participants of this discussion are: Baihas Baghdadi, CEO & Founder, TRADE & WORKING CAPITAL George Bellord, Director, BPL Cruz González Agrelo, Head of Lenders Solutions Team Europe & Global Head of Receivables and Supply Chain, WTW Swaroop N L N, Global Product Head – Sustainability, Innovation, FIs & Asset distribution – Global Trade and Receivables Finance, HSBC Khilola Turaeva, Head of Trade Risk Distribution, EMEA, Bank of America Patrik Zekkar, CEO, Enigio Sean Edwards, Chairman of the International Trade Forfaiting Association (ITFA) Harsha Mehta, EMEA/LatAm Trade Asset Distribution, Citi The discussion covered several key areas: 📊 Trade Credit Insurance: Strategies for brokers and underwriters to manage risk and enhance capacity, overcoming regulatory hurdles like Basel III, leveraging technological advancements such as AI and big data, and evolving insurance markets. 🌐 Supply Chain Finance (SCF): Approaches for global banks to enter emerging markets, fostering SCF growth, benefits and challenges of syndication, and innovative solutions to improve market capacity. 💻 Digital Trade Documents: Progress in digitalisation, overcoming legacy systems, the need for interoperability, and the impact on SMEs, supported by regulatory measures. 🏦 Private Credit Access: Impact of the shift to non-bank financial institutions (NBFIs), growth in the NBFI market, strategies to boost private credit access, and enhancing collaboration between banks and NBFIs. 💡 The session aimed to highlight practical solutions and collaborative efforts to improve trade finance access and address existing gaps. 🔔 Stay tuned for more updates and exclusive content, brought to you by TFG, proud media partners of the event. Deepesh Patel | Mark Abrams #itfacyprus2024 #marketupdate #collaboration #bridgingthegap

Check out the 2024 CGI and BAFT Trade Technology Survey findings, focused on navigating the future of trade and technology. In its fourth year, this annual survey captured the pulse of technology advancements in the global trade finance sector. Learn more: https://lnkd.in/e28G8jTb

At Copenhagen Institute for Futures Studies, we're engaged in several large projects focused on the future of banking—a sector marked by significant uncertainties. EY and the Universität St.Gallen (HSG) have just released their latest report on The Future of Retail Banking. This is definitely a report worth reading for anyone interested in where bank sector is headed. #Finance #Futures #Foresight

Whats trendy in Global Trade according to US banks: At a recent GTR roundtable, leading voices of the country's local, regional and international banks spoke about the trends and shifts in global trade that's on their mind. - Trade Finance Importance: Trade finance remains essential as the industry navigates post-pandemic recovery, regulatory changes, and digital transformation. - Shifting Trade Patterns: - Mexico has surpassed China as a more significant trade partner for the US, highlighting the trends of nearshoring and friendshoring. - Open account transactions now account for about 80% of trade, shifting focus from traditional methods. - Emergence of Supply Chain Finance: - Banks are increasingly focusing on supply chain and receivables finance rather than traditional trade finance. - Commodity finance is gaining traction due to increasing regional trade flows. - Fintech Influence: - Fintechs are reshaping trade finance through innovative structures and partnerships, helping streamline operations and enhance client service. - Middle-Market Opportunities: - There is a significant opportunity in catering to middle-market companies, which are often underserved compared to large corporates. - International Trade Challenges: - Regulatory complexities and barriers in foreign markets, such as China and Canada, pose challenges for US banks in expanding trade operations. - Collaboration Among Banks: - Collaboration between global and regional banks is crucial for building robust trade finance solutions and addressing liquidity challenges. - Cost Pressures: - Rising costs associated with compliance, tariffs, and sanctions are impacting banks' operations and pricing strategies. - Sustainability Focus: - ESG initiatives are becoming increasingly important, with banks aiming to support clients in achieving sustainability goals through financing and technology partnerships. - Strategic Growth: - Banks are advised to focus on niche markets and specific trade corridors where they have established expertise and client relationships to foster growth. For more details, you can read the full article [here](https://lnkd.in/eYqeaM7X). #TradeFinance #SupplyChainFinance #Fintech #MiddleMarket #InternationalTrade #ESG #DigitalTransformation #Banking #TradePatterns #Collaboration

🌍 Global trade is still stuck in the paper era, with billions of documents printed daily. But the shift to digital is crucial for efficiency, transparency, and sustainability. 🟣 In this article, Vivek Ramachandran, Head of Global Trade Solutions at HSBC, takes a look at the future of international trade 🔽 http://spr.ly/6043qVdbS #TradeFinance #DigitalTransformation #FinTech

US equities had been outperforming global markets until mid-July, but what triggered the recent sharp selloff? What opportunities can investors look for amid heightened volatility? In this market update, our CIO Americas Jose Rasco and Investment Strategist Michael Zervos delve into the factors that led markets to reprice expectations, as well as our market forecast in the short term. Read the full analysis here: https://grp.hsbc/6045YA2zv #InvestmentOutlook #Fed #USEquity