1.3 The End of Balance Sheet Lending? The Trade Finance Distribution initiative explained Fourteen leading global financial institutions have launched a drive to use technology and standardisation for the wider distribution of trade finance assets.
Christoph Gugelmann CEO, Tradeteq
The TFD Initiative The low risk profile of trade finance as an asset class is widely acknowledged, but it remains one of the largest financial markets yet to be tapped by institutional investors. Infrastructure technology, credit and risk management processes, and reporting are critical to lowering barriers to entry and improving transparency. TFD Initiative is powered by Tradeteq, the global trade finance distribution platform. Tradeteq’s technology allows banks and
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Trade Finance Talks
AndrĂŠ Casterman Chair, ITFA Fintech Committee Non-Executive Director,Tradeteq
institutional investors to efficiently connect, interact, and transact. The International Chamber of Commerce (ICC) United Kingdom and the International Trade and Forfaiting Association (ITFA), the leading international association for banks and financial institutions involved in cross-border trade and forfaiting, have each joined TFD Initiative as an observer.
The Market Need The global trade finance industry is worth more than US$25 trillion
and is a vital piece of international business and commerce. A network of institutions, including banks, financiers, and technology providers, supports importers and exporters as they conduct their trade activities and reduces the risks involved in cross-border transactions. The traditional trade finance process, using instruments like letters of credit to provide a corporate safety net, has largely remained unchanged for decades, if not centuries. Over the past few years, however, this has come at an increasing cost to banks’ balance sheets. Regulations
