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The C-Suite Challenges of a Trade Finance Bank | Finextra

Over the last two year, globally we have seen a drop in revenues from trade finance from USD 41 billion to USD 36 billion. Banks not only need to look at ways of driving deeper wallet share of the large corporate client’s business but also look to grow its business from MSMEs and SMEs. With these falling revenues the focus is shifting from traditional Trade Finance products like Letters of Credit, Guarantees to simpler and cheaper open account based financing products. Today more than 80% of the Trade finance is done using open account and this number on the rise. Solutions like dynamic discounting offer new revenue streams for banks without putting risks on their balance sheets. Key would be to launch these products as soon as possible. It is important therefore that the technology solution that drives the entire business can cater to domestic and international business of customers and also ensures that there is the provision to configure on-demand solutions. The flexibility to package newer rules to scale to ever changing compliance guidelines and processes to deal with newer emerging segments and dynamic pricing is imperative.

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The C-Suite Challenges of a Trade Finance Bank.