Discover how Blockchain technology is revolutionizing Trade Finance, providing additional security, reducing costs, and increasing efficiency for exporters, importers, and financial institutions. Learn about the benefits and future prospects of BCK solutions in TF.
Extract
[...] Blockchain in the world of Trade Finance, a revolution? - Interview with the researcher Hello Mr. Thank you for your participation in enlightening us on BCK in TF What are the impacts of the digitalization of international trade? The global trade has been completely disrupted by new technologies. All actors are impacted, whether it's banks, transporters (whether it's in freight or maritime transport, for example, I think of Maersk, the Danish transporter), in logistics, forwarders, credit agencies and therefore all parties involved in international trade. [...]
[...] In addition, paper exchanges will be strongly reduced, or even disappear, and the life cycle of the operation is accelerated. Another advantage is that this digitalization of the supply chain process leads to productivity gains for all actors through fewer administrative tasks to be performed. Another benefit is that the TF by BCK is thus less expensive than a traditional documentary credit and faster to implement and adapted to intra-European trade, in which transport times are short, and characterized by a certain legal security. If we take the case of international trade, the procedures are heavy. [...]
[...] We can also report a reduction in operational risk due to decentralized electronic records, replacing paper documents and manual processes. Finally, we can add a speed of execution that takes a few minutes instead of a few days, and therefore a time gain to unlock operations and liquidity. What is the role of banks in TF? The bank that finances must know the buyer and the seller; as well as the procedures for recovery and dispute between the importer and the exporter. [...]
[...] The TF by BCK leaves room for new perspectives of growth of intra-European trade, as well as the appearance of new exchange flows with areas where the seller feared until now not to be paid. What are the benefits induced by BCK on TF? First of all, we need to remember that the financing of international trade was once centralized by banks. In addition, it was a long, manual, complex and costly process, as well as its mechanisms for protection against export risk. Or, the Blockchain makes it decentralized and offers other benefits. [...]
[...] The adoption of this new technology in TF goes hand in hand with a deep revision of the TF operations process. In fact, banks are much more guarantors of the security of the solutions they provide than Fintechs. I believe, despite the digitalization of international trade financing through technological platforms, banks will always be there to accompany the client, in a secure and cost-effective manner. Which banks are the most active in TF via BCK? I would cite HSBC, due to its core business in Asia, where major exporters are located, or ING, and on the French side, BNP Paribas or Société Générale. [...]
