Estimated reading time: 2 minutes
ETR Digital, a new fintech venture, is bringing to market a new easily deployable tech application designed to digitise negotiable instruments, as traditional paper-based trade documentation continues to give way to electronic alternatives.
The company’s solution focuses on digital versions of promissory notes and bills of exchange, working with a global electronic signature and identity verification provider to ensure compliance and security standards.
Negotiable instruments are inherently transferable between any number of parties, and digital negotiable instruments (DNIs) have gained attention from corporates and financial institutions as a potential solution to longstanding inefficiencies in trade and supply chain finance. ETR Digital emerged from Arqit Trade Secure to meet the needs of corporates and banks in this avenue.
The company’s entry into the DNI space follows two years of development work. While several financial institutions have experimented with digital trade documentation, widespread adoption has been slow, partly due to complex implementation and regulation.
The landscape in the UK is promising, bolstered by growing awareness through industry bodies like the International Trade and Forfaiting Association (ITFA) and the International Chamber of Commerce (ICC). “In the adoption timeline of awareness, education, and business adoption, the UK is comfortably in stage 2, and progressing to stage 3,” explained Dominic Broom, CEO of ETR Digital, who previously worked at Arqit.
The UK government’s push for digital trade agreements, as seen with Singapore, Switzerland, and India, suggests that the time is ripe for solutions similar to ETR Digital’s offering.
Particularly noteworthy is the potential impact across the Commonwealth, especially in African markets. “Sub-Saharan Africa, with its digital-native business owners and leadership in mobile banking technology, stands to benefit significantly,” said Broom. “The advantages of digitalisation are most pronounced at the SME level, where African businesses could see substantial gains.”
Several Commonwealth nations have indicated through the Commonwealth Secretariat their intention to implement necessary legislative changes. ETR Digital’s technology is easy for businesses and institutions to adopt, making it particularly suitable for integration with existing mobile payment systems in emerging markets.
The service has already garnered interest beyond the UK, with positive engagement from businesses in Germany, Ireland, the Netherlands, Saudi Arabia and the UAE.
