From ABC to XYZ – All You Need to Know About Trade Finance
Did you know that over 80% of the world trade relies on trade finance?
In this tech-savvy era, where every other thing is given that Midas touch of technology, trade finance has bloomed by that technological touch too. Heavily reliant on paper, phone calls, emails, and many more, trade finance had been on a quieter side of finance.
But over recent years, FinTech has shaken up the ‘Sleeping World’ of trade finance by making the finance simpler, faster, and much efficient. Negotiating financial terms, securing letters of credits, and obtaining invoice financing are now just a one-click away.
Around 60% of financial institutions view FinTech firms as potential partners.
And what has made all this possible?
Well, the answer lies in the ABC & XYZ. So, let’s dig in and figure that out.
A- Artificial Intelligence
Through the analogs, natural language processing, and chatbots, Artificial Intelligence has brought a revolution in the current framework of finance. Machine Learning or ML which is another subset of AI has made the processes much faster and error-free than humans. AI has been constantly providing predictive analysis for problems, discovering new opportunities in the market, understanding trading partner’s requirements, and making electronic configuration of trading documents. Therefore, it’s won’t be wrong to say that Artificial Intelligence has been a boon for trade finance.
Chatbots will save banks $7.3 billion by 2023.
B- Blockchain
Blockchain has majorly focused on reducing cost, boosting speed, and elevating the transparency of cross-border trade. The reason for this being Distributed Ledger Technology or DLT which has paved the foundation for digitalization in trade finance. Owing to this, sellers get their payment in time and can make effective use of their working capitals. Not just that but the back-office automation in drafting documents slash overloads, chances for frauds, and hoax trading are reduced and a new global trading utopia has been created.
Over 77% of financial service
incumbents are expected to adopt blockchain in FinTech for in-product processes or systems by 2020.
C- Corda
In general, Corda is an open-source blockchain platform built and released by R3 in 2016. And since its development, R3 has brought over 70 companies like Marco Polo, Voltron to bring trade finance onto the blockchain. There has been a significant reduction in transaction times, mitigation of risks, and has made trade finance much easier. The prototype has integrated a standard user interface and with further enhancement, it would provide wider access to financing techniques. Owing to these benefits, we at WebMob have a focused team of certified Corda specialists, who tirelessly handle our projects.
X- xRapid
xRapid is a cryptocurrency-driven payment product by Ripple. The product provides on-demand liquidity to financial institutions for international payments without having a correspondent relationship from both ends. The transactions can happen in minutes and at a much lower cost than traditional methods. And all of this is possible through XRP- a cryptocurrency by Ripple which acts as the bridge between fiat currencies. Currently, being complementary to Swift, xRapid with the help of modern technologies is sure to replace its competitor.
Y- You
Yes. None other than you yourself as a customer are equally a part of trade finance. There would be no trading without customers and bank-led solutions are already long gone now! The entire FinTech industry has become customer-centric with the technological transformations taking place around. For each of our projects, our trade finance platforms are highly customer-oriented and flexible.
Over 77% of traditional financial institutions plan to increase their focus on innovations to boost customer retention.
Z- Generation Z
The natural ability of Generation Z to evolve with the latest technology and work thoroughly with it has made a positive impact on the trade finance sector. Gen Z has more access to credit but they do not take much of it, and this is the most dynamic difference between them and the older generations. They are more likely to take risks as compared to Millennials and are
significantly better at handling their finances. Eventually, Gen Z finances will continue to shape economic trends and society is sure to benefit from their new ideas and lifestyles.
It just doesn’t end here!
Around the globe, financial institutions, banks, and FinTech startups are constantly been working on new tools and applications to bring a major transformation in trade finance. They do say ‘Blockchain is the future’, but the fragmented nature of global trade hasn’t been much support in favor of this digital transformation!
The trade finance is set to reach newer heights, especially with the incoming of scalable FinTech platforms. And with us, you can get that vital push in the industry.
Why should you choose us?
A- We utilize the latest AI techniques for trade finance.
B- When it comes to trade finance platforms, Blockchain is our strentgh.
C- Not just Corda, but we use Hyperledger too for flexible trade finance platforms.
X- Along with xRapid, we deal with xCurrent too.
Y- As a customer, you and your finances matter to us.
Z- Our Gen Z team is always at your service.
So, why waste time just wondering when you can have ABC and XYZ of the trade finance at your fingertips with WebMob?
Feel free to join us, now.
Nitin Gupta, the CEO of WebMob Software Solutions, is a visionary leader renowned for his innovative approaches to leveraging emerging technologies to transform businesses globally. Under Nitin's guidance, WebMob has evolved into a pioneer in fintech, catering to esteemed clients across Europe, APAC, and the Middle East. As a thought leader, he continues to drive WebMob towards new heights of success, cementing its reputation as an industry leader in the IT sector.