Increased banking regulations and higher compliance costs have led to a culture of de-risking, where many banks have been forced to withdraw from perceived “riskier” markets – with local businesses in developing Asia being particularly affected. Indeed, Asia and the Pacific bears 40% of the US$1.5 trillion global trade finance gap, representing the difficulty that SMEs in the region have in accessing the financing they need.
In a recent article for Asia Outlook, Dominic Broom, Global Head of Trade Business Development, Treasury Services, BNY Mellon, discusses how technology could help banks to address the issue of de-risking. To most effectively develop technological solutions to close the trade finance gap, Dominic says, requires innovation and collaboration between all the players in the trade finance ambit.
To read the full article, please click here and go to page 16.