TRADE FINANCE
Facing the changes in Trade Finance Subramanian Krishnamurthy Head - Global Transaction Services at National Bank of Fujairah details recent conditions and new developments that have shaped and are helping to improve the processes and efficiency of trade finance
C
Subramanian Krishnamurthy Head Global Transaction Services at National Bank of Fujairah
an you please share what the main changes that the trade finance has gone through in recent years? Since its inception in 1982, NBF has positioned itself as a global trade services provider in the UAE, serving as a one-stop shop to provide all import and export requirements for businesses. The bespoke services we offer clients derive from an in-depth understanding of their working capital and term financing needs. Our leadership position in the space has enabled us to stay abreast of fast-evolving developments and respond to them to better serve our clients. As an acknowledgement to our efforts on enhancing the role of business enablers NBF was awarded the “Best Trade Finance Provider” awards at the MEA Finance 2021 Awards. Over the years, we have witnessed the trade finance industry undergo a transformational journey towards digitisation and innovation with the emergence of new technologies such as blockchain. Nevertheless, the Covid-19 pandemic remains the most impactful, yet unforeseen event that has impacted and will continue to impact stakeholders operating in trade finance.
32
With the pandemic taking its toll on global trade and supply chain, the priority for economic recovery is to mobilise capabilities and resources to trade flows back on track. Private and public partnerships will be critical to making this happen and working together to close any financing gaps. Offering financing support to SMEs is a key priority towards this end especially in the UAE as these businesses generate 70% of national GDP. In this regard, NBF will continue to work with corporates and SMEs to meet their needs and extend its unmatched expertise in trade finance to support the national economy.
Can you share with us NBF’s digital strategy and how the bank is progressing towards it? Being in the UAE is an impetus to any bank or business to ensure they have a digital-focused strategy; the country and its leadership have anticipated the need to embark on the digital transformation journey ahead of many others. At NBF, the transition to further digitisation started long before the pandemic and is now accelerating, making digital the preferred choice for customers. In 2020, we acted swiftly and invested in new products and services as we
Banking and Finance news in the MEA market
looked at increasing efficiency, helping businesses overcome Covid-19 related constraints, and broadening our customer base especially focusing on segments of the population that spend more time on digital channels. To date, more than 80 per cent of the bank’s customers have transitioned from traditional to online banking. We have also moved towards more automation and use of robotics and smart technologies to have over 90 per cent of transactions now fully automated in specific processing areas. Despite the pandemic, we rolled out a number of products including NBF Connect, a platform designed to empower, network and help SMEs with their business challenges; eDirham Instant, a digital payment method that allows customers to securely pay for governmental fees and services; NBF klip, a robust, secure and interoperable digital cash platform that is designed to transition the UAE to a truly cashless society. More recently, NBF participated for the launch of UAE Trade Connect, a nationwide blockchain platform, co-created by Etisalat Digital. This platform aims at supporting financial institutions combat fraud and duplication and to tackle key issues in the trade finance space.
