Trade and supply chain finance are undergoing a significant transformation in the wake of the Covid pandemic and the ongoing war in Ukraine. But technology is also accelerating positive change in these areas. Here, two experts from BNP Paribas discuss the challenges confronting their industry and explain how banks, fintechs, industry bodies, and corporates, are successfully deploying technology and innovation to overcome any obstacles.
The past several years have been tumultuous for trade and supply chain finance (SCF), with the pandemic, geopolitical tensions, the Russian invasion of Ukraine, and worldwide economic uncertainty causing considerable upheaval globally. Optimism is, therefore, high that re-engineering both trade finance and SCF through technology will help ensure these tools are fit for purpose going forward – and can deliver even greater working capital benefits for corporate treasurers.
Transitioning supply chains to being low carbon has become a major objective for BNP Paribas’ large corporate clients
Laying the groundwork
While the desire to digitalise trade finance may be strong, progress has thus far been mixed as this traditionally paper- based discipline requires the alignment of multiple different stakeholders – many of whom are pushing for standards before digital solutions become the norm. As such, regulation and guidance in the trade finance space are top of mind.