Key purposes of trade credit insurance:

Wulff, outlines three pivotal roles of trade credit insurance:

Risk Mitigation: Providing a safety net for the insured party in case the buyer fails to make payment, mitigating potential losses.

Financing Facilitation: Enhancing the appeal of financing for banks by showcasing the credit risk coverage provided by highly rated insurance companies.

Data-Driven Decision Making: Leveraging an extensive database to offer insights into the creditworthiness of buyers, aiding sellers in making informed decisions, particularly in new markets.

Richard Wulff’s insights from FCI’s annual meeting provide a comprehensive overview of the dynamic world of credit risk insurance. They offer a glimpse into the challenges and opportunities that lie ahead, reaffirming the industry’s commitment to resilience, adaptability, and effective risk management in the ever-changing global trade environment. 

Hear from Richard Wulff

Reporting live from the EBRD Trade Facilitation Programme (TFP) Trade Finance Forum in Vienna, we bring you an exclusive interview with Tsolmon Bat-Erdene, Manager of FI and TF in the International Banking Department at Khan Bank, Mongolia. 

Tsolmon sheds light on the trade challenges and promising opportunities that Mongolia faces. Sandwiched between two of the world’s largest countries, Mongolia navigates geopolitical risks and transportation challenges in cross-border trade. 

Despite these challenges, Mongolia anticipates a significant boost in trade with the full operation of the Oyu Tolgoi mine of Rio Tinto, set to become the world’s fourth-largest mine of its kind in the next few years. Tsolmon also emphasises the importance of financial literacy, especially among their retail-oriented client base, and highlighted their efforts to educate clients about the benefits of formal trade finance structures. 

This interview underscores the cautious optimism for Mongolia’s trade prospects and the role of education and development institutions in driving progress.

 Watch the full interview for more insights.

Hear from Tsolmon Bat-Erdene

In a recent interview at the EBRD’s Trade Facilitation Program conference in Vienna, Deepesh Patel, the editor at Trade Finance Global, welcomed Abla Hussein, the Sector Head for Non-Bank Financial Institutions at the Commercial International Bank of Egypt (CIB).

Abla Hussein provided an insightful overview of Egypt’s dynamic trade and trade finance landscape. She emphasised Egypt’s strategic geographical location as a trade hub, connecting Asia and Africa, as well as its involvement in various multilateral trade agreements. With over 100 billion dollars in trade volume, Egypt is a thriving market for trade finance, and CIB is expanding its presence in Africa through strategic acquisitions. Abla also highlighted the active involvement of European companies in Egypt’s mega infrastructure projects, making it a dynamic trade finance market.

Despite some challenges, CIB has access to a wide range of correspondent banks, and they are leveraging EBRD’s support to overcome limitations in tenors and amounts, ultimately enhancing their competitiveness and offering better pricing to corporate clients.

The interview concluded with insights into CIB’s growth plans in Egypt and beyond, making it a must-watch for anyone interested in Egypt’s trade and finance scene.

Watch the full interview for more insights.

Reporting live from the EBRD Trade Facilitation Programme Trade Finance Forum in Vienna, TFG sat down with Francis Malige, Managing Director, Financial Institutions at EBRD.

Malige underscored the pivotal role of trade finance for EBRD, emphasising, “It’s really about the willingness to push together for better lives in the countries where the trade is going on.” He highlighted how trade finance is a flagship product for EBRD, facilitating integration, even in times of crisis like the COVID-19 pandemic.

The conference serves as a platform for global bankers involved in TFP to connect and collaborate, emphasising the importance of personal relationships in the world of trade and banking.

Watch the full exclusive interview for more insights.

Join TFG’s Deepesh Patel and Ravesh Lala, IBM’s Head of Business Development for Hybrid Cloud Solutions, at Sibos in Toronto as they clarify the complexity of generative AI and its diverse applications in the trade industry. Ravesh starts with one of the foremost challenges confronting banks in trade and supply chain finance—digitalisation. He underscores the critical importance of transitioning from conventional paper-based procedures to a fully digital supply chain to enhance operational efficiency.

Looking at generative AI, Ravesh offers three illustrative examples of its practical use: streamlining approval workflows, decoding complex paper documents, and grasping the intricacies of global trade compliance regulations. He emphasises the transformative journey of AI, commencing with basic automation and advancing toward its generative capabilities, where AI can even draft contracts autonomously. This AI revolution holds the potential to redefine the landscape of trade, supply chain management, and receivables finance.

We hear insights from Deepesh Patel, Editor at Trade Finance Global, and Ben Ellis, the SVP Global Head of Visa B2B Connect, reporting from Sibos in Toronto. They highlight the core themes of Sibos: transparency, speed, and security.

Ben Ellis elaborates on the Swift partnership with Visa, focusing on three key elements. First, pre-validation ensures error checks before payments are sent, ensuring accuracy. Second, GPI data offers real-time payment tracking. Lastly, the alliance cloud represents Visa’s move towards a cloud-based connection with Swift, streamlining operations and enabling continuous upgrades.

These initiatives aim to reduce friction, boost transparency, and facilitate faster, error-free money transfers, ultimately enhancing the quality, reliability, and predictability of payments. This partnership holds the promise of simplifying and optimising financial transactions.

At Sibos, the topic of trade digitalisation was buzzing with discussion. However, in order for the industry to make significant progress, it’s essential for all stakeholders to align their efforts. Pamela Mar, Managing Director of ICC Digital Standards Initiative (DSI), is at the forefront of addressing this issue.

In a recent interview with TFG, she emphasised the strides made in trade digitisation in 2023. These advancements include the creation of enabling conditions for businesses to digitise their supply chains, global digital standards development, and the importance of adoption by businesses.

Pamela also highlighted the launch of the FIT Alliance, a collaboration BIMCO, the Digital Container Shipping Association (DCSA), the International Federation of Freight Forwarders Associations (FIATA), the International Chamber of Commerce (ICC), and the Society for Worldwide Interbank Financial Telecommunications (Swift). 

Aimed at promoting the digital delivery of trade data. The alliance seeks commitments from all supply chain stakeholders, emphasising a future of paperless trade, starting with electronic bills of lading. As the industry progresses toward a digital future, Pamela Mar and organisations like ICC DSI are playing a pivotal role in shaping the landscape of trade finance.

In a recent conversation at Sibos, Toronto, TFG’s Deepesh Patel sat down with Steven Beck, Head of Trade and Supply Chain Finance at the Asian Development Bank (ADB). Together, they explore the reasons behind the staggering expansion of the trade finance gap, which has now reached a staggering $2.5 trillion.

This vast gap represents a concerning lack of financial support for the import and export sectors, posing a significant obstacle to realising the full potential of trade in driving economic growth and job creation. To tackle this issue, two key steps are proposed for the industry. 

First, the urgent need for the digitalisation of global trade. They discuss the Digital Standards Initiative, which aims to garner consensus among various stakeholders on the electronic versions of 35 critical trade documents. They further highlight the importance of governments aligning their domestic legislation with UN model laws that recognise these electronic documents.

This transformative shift toward digitalisation holds the promise of significantly boosting global GDP and productivity. Steven Beck underscores the pressing importance of closing this substantial trade finance gap.

Live from Sibos in Toronto, TFG’s Deepesh Patel spoke with Tracey Black, the CEO and President of Payments Canada. In a financial sector renowned for its stability and robust regulatory environment, Payments Canada has been entrusted with the pivotal task of modernising payment systems.

Tracey Black explained that their modernisation initiative aligns with the existing regulatory framework and the imperative of maintaining a resilient payment ecosystem in Canada. Given the rapid evolution of payment methods, staying ahead is crucial. She emphasised their significant modernisation efforts since 2016, including updates to batch payment systems, replacement of the high-value payment system, and the ongoing development of a real-time payment system.

Moreover, they have introduced the ISO 2022 message standard on the high-value payment system, with plans to educate and support the ecosystem for its widespread adoption. Regarding the surge in diverse payment methods, Tracey expressed encouragement for the innovation seen in Canada, particularly in the realm of digital payments. 

She anticipates that with the introduction of the ISO payment standard and real-time payments, new and unforeseen payment experiences and products will emerge, enhancing the landscape of financial transactions in Canada. This conversation underscores the pivotal role of Payments Canada in navigating the evolving payments landscape to benefit both consumers and businesses.

Hear from Tracey Black