These are heady days for the trade finance industry. An area of business that has gone largely unchanged for centuries, new technologies and market participants are now altering the face of trade finance – posing fresh challenges but also opening up a range of opportunities for corporates. Eleanor Hill, Editor, TMI, speaks with Bruno Francois, Deputy Global Head of Trade Finance at BNP Paribas, to find out more.
Eleanor Hill (EH): Which macroeconomic factors are having the most significant impact on trade finance today?
Bruno Francois (BF): The prospect of a trade war is having a significant influence on global trade dynamics. Despite this, or perhaps because of it, trade finance is performing decently as many companies have started to take action to mitigate risks when the economic environment is becoming more complex. Some changes in behaviour have been seen in the ways companies are sourcing with a trend to bring part of its sourcing and manufacturing closer to their home markets. As such, we are seeing a significant rise in intra-European trade, which is positive for the continent and the industry.