Disruption and digitalisation in trade finance

Commodity trade finance has seen many disruptions in recent years. Lender demands for better visibility into partners’ risk management and supply chains have been increasing, as have technology initiatives to get this information to them. And issues from lenders leaving the market to the recent collapse of Greensill Capital could mean that traders who cannot provide this visibility could find themselves struggling to access trade finance in a squeezed market. Trade finance in the news The latest event making waves in the world of trade finance is the collapse of Greensill Capital in March. After news that the business was unable to secure an insurance renewal, Credit Suisse froze $10 billion of funds, bringing Greensill to the brink of insolvency and causing concerns over an impact on supply chain finance (SCF). The good news is that a number of industry voices have expressed their opinion that this is an atypical situation, resulting from a single company’s structure, rather than a problem with the entire supply chain finance industry. Others have pointed out that the activities that led to the collapse were not related to Greensill’s supply chain financing and industry groups have been making efforts to reassure funders and insurers… continue reading

Continue reading Disruption and digitalisation in trade finance. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply