The supply chain finance technique of payables finance is regarded by the industry as a useful and beneficial tool for both buyers and suppliers. Yet recently, it’s come under significant scrutiny by the press, financial Ombudsman, and various regulators around the world. Add to this, the financial distress wrought by the Covid-19 pandemic, with SMEs tending to be the first to feel the effects of financial crises. Peter Mulroy, Secretary General of FCI, Stacey Facter, SVP of Trade Products at BAFT, and Christian Hauscher, Chairman of the Global Supply Chain Finance Forum and Product Manager for Trade and SCF EMEA at Deutsche Bank, discussed why payables finance remains a force for good.

Full article and report here: https://www.tradefinanceglobal.com/posts/podcast-s1-e49-misuse-of-supply-chain-finance-worrying-but-not-widespread-says-gscff/

Among the oldest areas of financial services, trade finance always held a central position within international trade, with 80 to 90% of transactions being financed by some form of credit, guarantee or insurance.

However, the sector is one of the most manual and paper-based of the whole industry, resulting in expensive and error-prone operations with a slow processing time.

Emerging and new technologies have potential to address these problems, with the potential to transform the way these transactions are conducted. With that in mind, today I am joined by Arnaud Doly, CEO & Founder of Nabu.

Banks remain fairly optimistic about the future of trade finance, according to ICC’s recently published annual global survey on trade finance.

In the words of ICC’s Secretary General John Denton, “The year 2020 has not unfolded as anyone would have anticipated.”  

As partners of this survey, TFG heard from Alexander Malaket, Chair of the Global Survey, joining from Toronto. We’ll be dissecting the Global Survey, highlighting the key takehomes and discussing what this means for trade finance.

Read more about the Global Survey here: https://www.tradefinanceglobal.com/posts/breaking-banks-predict-up-to-30-decline-in-trade-flows-latest-icc-global-survey-on-trade-finance-shows/