Blog

The compliance burden on US trade finance lenders has never been higher. For several years, banks have grappled with a gradual escalation of rules and requirements to prevent financial crime, coupled with the threat of tough enforcement action. In the past year, the introduction of sanctions against Russia has upped the stakes further.

Africa is growing its reputation as a hotbed for technological innovation, while shifting supply chains and economic diversification efforts are opening exciting new opportunities for trade. However, access to trade finance facilities remains a long-standing challenge, particularly for the continent’s vast number of SMEs. Digitizing processes and documents could prove a much-needed catalyst for bringing African trade into a new era.

The world of trade finance has long been a bastion of traditional processes and systems, with many institutions relying on time-tested approaches and a web of interconnected relationships. However, as the global economy becomes increasingly digital and interconnected, the need for banks and corporates to adapt and transform their trade finance operations has never been more critical.

The outlook for world trade may be gloomy, with forecasts suggesting ongoing inflation and suppressed demand in many markets. But in the Middle East, the sentiment is the opposite. The region’s energy market continues to thrive, as European nations historically reliant on Russian oil and gas seek alternative sources of supply. At the same time, efforts to diversify export portfolios are being complemented by upgrades to port infrastructure and hi-tech logistics offerings, opening fresh opportunities for trade.

Enno-Burghard Weitzel, SVP of Strategy, Digitization and Business Development at Surecomp, explains how using the LEI for digital identity verification in trade finance transactions is improving operational efficiencies for customers while driving inclusive trade growth.

Continuing our theme of connectivity, in this blog we’ll take a closer look at how trade finance technology can connect all transaction participants, empowering more efficient trade while supporting collaboration (instead of competition) across the trade finance ecosystem.