A new collaboration between Tradeteq, the trade finance distribution hub, and Microsoft, is aimed at building out a market infrastructure that allows financial institutions to run trade finance distribution workflow processes while complying with stringent data residency requirements.
Microsoft’s cloud-based Azure platform will give access to over 60 regions globally for those institutions using Tradeteq’s services ¬– improving access, data resonance and security.
With the distribution of trade finance assets being a longstanding challenge for banks, the improved access through this collaboration is expected to alleviate the data issues being faced in different jurisdictions.
As part of the arrangement, Tradeteq has also become a partner in Microsoft’s reseller programme, enabling easier connection and collaboration with potential new clients.
Christoph Gugelmann, CEO of Tradeteq told TMI that an estimated 50% of trade finance applications from SMEs are rejected. “With SMEs representing the vast majority of businesses worldwide, this shortfall has a direct impact on global trade.”
At the same time, he continues, “banks are limited in their capacity to support SMEs given KYC, AML and Basel regulations. Opening the trade finance market to alternative investors would mean banks could work their balance sheets harder and support greater numbers of businesses without compromising regulations.”
Gugelmann says that providing the necessary infrastructure to bridge the gap between alternative investors and banks “directly benefits businesses by making trade finance more accessible and supporting the development of SMEs around the world”.