Blog by Tal Weiser, Surecomp’s Chief Revenue Officer

For the past two decades, I have witnessed the evolution of transaction banking from cash management, payments and treasury services transitioning from paper-based processes to digital workflows, from siloed systems to interconnected ecosystems, and from legacy infrastructure to cloud-based platforms. However, the one area that has historically lagged in this transformation is trade finance.

Despite being the backbone of global commerce, trade finance has remained notoriously manual, fragmented, and resistant to change. Banks have long struggled with aging systems, regulatory complexities, and operational inefficiencies, making trade finance a prime candidate for digital disruption.

Now though, we are at a pivotal moment; last year we saw a notable uptick in digital adoption and the industry is finally embracing SaaS (Software-as-a-Service) as the future of trade finance. More major, local, and regional banks are shifting towards Surecomp’s cloud-based Trade Finance-as-a-Service (TFaaS) solution to drive efficiency, scalability, and compliance.

“Surecomp was the obvious choice for deploying end-to-end digital trade finance because we needed an affordable yet scalable solution to manage both our customer communication and back-office processing.” Kazim Ather, Head of Trade Finance at Sonali Bangladesh Bank UK. 

Why Has Trade Finance Been Slow to Modernize?

Unlike payments or cash management, trade finance has historically faced several challenges that have slowed its adoption of digital transformation:

  • Paper-intensive processes – the reliance on physical documents such as Letters of Credit (LCs), Bills of Lading, and Promissory Notes slowed down transaction cycles.
  • Risk aversion – fraud risks, geopolitical uncertainties and regulatory scrutiny, have resulted in banks being hesitant to overhaul their trade finance infrastructure.
  • Fragmentation – data sharing and integration was deemed complex due to multiple stakeholders, including banks, corporates, logistics providers, insurers and regulators, operating in silos.
  • High maintenance costs – many banks still run decades-old trade finance systems, requiring heavy customization and IT support.
  • Industry regulation – frequent regulatory updates (i.e. Swift) are resource-intensive, costing time, money and manpower almost annually which can hamper innovation.

While payments and cash management transitioned years ago to real-time, API-driven and cloud-native solutions, trade finance has remained in a legacy gridlock – until now.

The TFaaS Transformation

SaaS is fundamentally reshaping trade finance by addressing long-standing pain points. Cloud-based platforms are helping banks and corporates unlock new efficiencies, reduce costs, and enhance connectivity across the trade ecosystem.

Cost Efficiency & Scalability

On-premise trade finance systems require significant upfront investment, dedicated IT teams, and ongoing maintenance. By contrast, a primary driver of SaaS adoption is cost reduction:

  • Lower Capital Expenditure (CapEx) – no need for heavy infrastructure investment.
  • Pay-as-you-grow model – ability to scale trade finance operations without massive upfront costs.
  • Automatic updates & compliance – vendor-owned software upgrades and regulatory adjustments, reducing IT burdens.

Faster Deployment & Innovation

Traditional trade finance systems take months – or even years – to implement. SaaS solutions, in contrast, can be deployed in weeks with minimal disruption.

  • Rapid onboarding – banks can quickly onboard new corporate customers.
  • Innovation without IT overhauls – banks can launch new trade finance products with no extensive development costs.
  • Regulatory agility – banks can stay ahead of changing compliance requirements like the pending Digital Operational Resilience Act (DORA).

Seamless Connectivity via APIs

Trade finance operates within a complex ecosystem involving banks, corporates, logistics providers, customs agencies, and fintech partners. SaaS solutions leverage open APIs, enabling real-time data exchange and automation across stakeholders.

  • Seamless ERP & treasury integrations – corporates can manage trade finance directly from their enterprise systems.
  • Embedded trade finance – banks can offer trade finance as a service within marketplaces and B2B platforms.
  • End-to-End transaction visibility – all parties can benefit from real-time tracking of trade finance instruments, reducing fraud and disputes.

Enhanced Compliance & Risk Management

Regulatory scrutiny in trade finance covering document verification, sanction screening and fraud prevention has made compliance one of the biggest operational burdens for banks. SaaS solutions embed AI-driven compliance checks, reducing risks and manual workloads.

  • Real-time fraud detection – AI and machine learning flag suspicious transactions instantly.
  • Automated document verification – OCR and blockchain ensure data accuracy and prevent forgery.
  • Built-in regulatory updates – platforms automatically adapt to changing global trade compliance requirements.

The Road Ahead: What Banks Must Do

For banks looking to remain competitive in trade finance, embracing SaaS is no longer optional – it’s a necessity. However, this transformation requires a strategic mindset shift in:

  • Moving from “owning” to “accessing” technology. With Surecomp’s TFaaS offering, banks can access best-in-class trade finance tools without the burden of IT ownership.
  • Embracing partnerships with fintechs – collaborating with fintech providers will be critical for banks looking to scale digital trade finance services.
  • Leveraging data-driven trade finance – AI and analytics will unlock predictive risk modelling, automated decision-making, and real-time fraud detection.
  • Developing new business models – banks can monetize SaaS-driven trade finance through subscription-based services and embedded finance offerings.
  • Reducing costs and focusing on efficiency – TFaaS reduces IT overhead, allowing banks to focus on customer experience, innovation, and growth.

Conclusion: The Future is TFaaS

Having spent 20 years in transaction banking, I have seen technology redefine financial services time and time again. The shift to SaaS is one of the most significant transformations in trade finance, unlocking speed, efficiency, and global reach like never before.

Banks that act now will futureproof their trade finance business, while those that hesitate risk being left behind in a rapidly digitizing industry.

The question is no longer if trade finance will move to SaaS – but how fast your bank is willing to adapt.