Trade Finance Global (TFG) is excited to launch its latest whitepaper, ‘Are we doing enough to bridge the trade finance gap?’
The publication is based on a roundtable discussion hosted by TFG during the International Trade and Forfaiting Association’s (ITFA) 50th Annual Conference in Limassol, Cyprus.
The ‘$2.5 trillion global trade finance gap’, which represents an unmet financing need, is a statistic that plays like a broken record in our industry. The figure’s accompanying echo highlights that small- and medium-sized enterprises are particularly underserved.
But amidst the noise, there are few tangible strategies for reducing the $2.5 trillion gap. That’s why TFG’s Editorial Director Deepesh Patel met with eight industry leaders in sunny Cyprus, to discuss what solutions can be implemented to democratise trade finance access.
The roundtable featured:
- Cruz González Agrelo, Head of Lenders Solutions Team Europe & Global Head of Receivables and Supply Chain, WTW
- Baihas Baghdadi, CEO & Founder, TRADE & WORKING CAPITAL
- George Bellord, Director, BPL
- Sean Edwards, Chairman, International Trade Forfaiting Association (ITFA)
- Harsha Mehta, EMEA/LatAm Trade Asset Distribution, Citi
- N L N Swaroop, Global Product Head – Sustainability, Innovation, FIs & Asset distribution – Global Trade and Receivables Finance, HSBC
- Khilola Turaeva, Head of Trade Risk Distribution, EMEA, Bank of America
- Patrik Zekkar, CEO, Enigio
The whitepaper capitalised on the participants’ expertise, to delve deep into credit insurance for SMEs, and the rise of private credit and portfolio-based solutions for SMEs. Tailored products were also explored.
Regarding risk distribution, the whitepaper provides a detailed explanation of the originate-to-distribute (OTD) model, which offers banks a means to shift risk from balance sheets to institutional investors, and has recently gained traction.
No contemporary study would be complete without considering digitisation. The whitepaper looks at how technology is being implemented across trade finance segments, the impact of regulation in this regard, and how solutions can help companies to scale.
Deepesh Patel, Editorial Director at TFG, said, “While I often feel powerless in the face of challenges threatening the global economy, I am convinced that the trade finance gap is a solvable issue through coordinated cross-sectoral efforts. This expert panel reinforced my belief that the $2.5 trillion gap is not an inevitability we must simply accept.
“We hope this whitepaper instils some optimism about the future of trade finance for SMEs.”
