I am a Financial Institution
The global trade finance gap is about US$1.5 trillion. What opportunities are you missing out on?
There is more demand for trade finance in the world than we are supplying, which points to untapped potential in today’s global trade to deliver a greater economic progress. On a whole, with low default rates, trade finance is a relatively low-risk class of assets. But when there really is trouble, the price to pay can be very high. In 2020 alone, fraud costs banks billions of dollars. What can enable current and new players to confidently address the trade finance supply gap?
SGTraDex: Gateway to Digital Trade
SGTraDex addresses information asymmetry by promoting safe and secure data exchange across industry players and government agencies. With better visibility and transparency, financial institutions will benefit from SGTraDex by mitigating the risk of duplicate financing and having more assurance that the upstream and downstream trading activities of their customers are authentic.
SGTraDex also promotes the shift towards digitalised trade transactions with verified electronic documents and data exchange, away from the existing paper-based system that is more open to error and manipulation.
Closing the Gaps
Where current systems fail to level the playing field, digital trade may offer new access to information and affordable new technology to smaller players, so that underserved sections of the trade economy can have opportunities for growth and progress. With your participation, SGTraDex can aspire to resolve some of these challenges in trade finance.
The following findings are from the International Chamber of Commerce 2020 Global Survey on Trade Finance (ICC) and the 2019 Trade Finance Gaps, Growth, and Jobs Survey by the Asian Development Bank (ADB).
Opportunities for Financial Institutions
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