Substantial shifts in global trade flows have led to increased volatility and risk for corporates trading in the emerging markets, says Katharina Michael, Head of Trade Finance Sales Germany at UniCredit in International Trade Magazine. Collaboration and digitalization are therefore crucial to helping banks meet the growing demand for risk mitigation in these regions and ensure their clients are being served – even in the most testing conditions.
For example, the use of syndicated loans is enabling banks to share risks, while wider industry collaboration is bringing various digital solutions and initiatives to the market. Currently weighed down by slow and costly paper-based processes, this shift to digital trade finance processes will help to accommodate the extra demand in emerging markets, with products such as the Bank Payment Obligation and the Electronic Bill of Lading increasing both speed and efficiency in corporates’ financing processes.
The full article was published in the February/March print edition of the magazine.