Recent values of the global trade finance market showed that there would be promising values until 2026. Experts claimed that financing of international trade flows and working capital efficiency in current businesses show a healthy trade market that could improve by 3.79 percent successively in the next six years.
The global trade finance market was valued at 39.714 million US in 2018 alone and could rise up to 3.79 percent or reach 56,065.6 million by 2026.
The report claimed that optical character recognition of the development of technologies could reach up to 3.79 percent from 2019 until 2026 due to the fast digitization of global economies.
It was explained that the radio frequency identification and quick response codes that could identify shipments, manage blockchain, and the enhancement of digitization of trade documents are the primary drivers of the global trade finance market growth.
However, it was shared as a precaution that the lack of trade financing for small and medium enterprises, the insufficiency of risk evaluation services, limited legal certainty for cross-border financing, and operational efficiencies may deter the forecasted market growth.
It was also explained that the swift entering of advancements in the technology sector such as converting traditional banking methods for documentation into fintech-provided services like online payments could significantly improve the industry performance.
It was also added that efficient enhancement of trade methods and the provision of better financial opportunities even to SMEs would also contribute to the faster growth of the global financial market in the coming years.
The said standard for the forecast of the report was based on the performance of product type, service providers, end-users, and the regions in which emerging markets such as the fintech industry operates.
In other news, Global Finance reported that supply chain finance has also been emerging in several platforms today. It claimed that the adaption of technological advancements in the industry is more likely to expand further in the coming years.
The report claimed that supply chain finance is nearing maturity after buyer-centric programs continued to dominate the market. It was revealed that the increasing demand for financing in the lower tiers of suppliers gave better opportunities for strategic companies to provide their services in a global supply chain perspective.
The report referenced the DBS Bank of Singapore as one of the companies that have adapted high-technology equipment in offering financial services to its clients. It was revealed that it adapts APIs and blockchain options making it quicker for suppliers to engage in credit checks.
