A big part of bridging the trade finance gap can be accomplished by connecting disparate parties together.
“Usually, both communities have never met,” said André Casterman, CEO of TFD Initiative and Chairperson of the ITFA Fintech Committee, at the 2024 Trade Finance Investor Day conference in London.
One manner to overcome this is by connecting asset managers with SME-focused originators, business-to-business platforms, alternative lenders, and so on.
This bridge between these communities can be built using asset-backed securitisation: “transforming SME high-yield, low-risk trade assets into notes that investors can get exposure on, at a junior level or senior tranche level.”
Watch the full interview for more.