Trade Finance In The Digital Age

  Published on 22 May, 2020

Trade Finance In The Digital Age

  Published on 22 May, 2020

Trade Finance In The Digital Age

  Published on 22 May, 2020

Trade Finance In The Digital Age

  Published on 22 May, 2020

Demand for cross-border trade finance is expected to increase

 

Regional and international trade continues to grow, and the demand for cross-border trade finance is expected to follow. The purpose of trade finance is to act as a third-party to remove the payment risk, and the supply risk as payment for cross-border trade can be a challenge for both exporters and importers due to the sense of insecurity over the transfer of goods.

For example, an exporter may not be sure if, or when, the importer would pay them for their goods. On the other hand, the importer is also worried about making prior payments for goods from an exporter since they had no guarantee of whether the seller would actually ship the goods.

In the eighties, computer technology has started changing the way things works, especially documentation procedures and even more so, when the internet has started to become widespread in the nineties. Technology has made it not only possible to prepare documents using a computer but also to transfer documents digitally.

Globally, as more countries connect and trade, expansion of trade finance is, therefore, essential for trade and economic growth. However, one common problem in trade finance is its reliance on manual, paper-based processes that are duplicated across multiple parties. This causes the trade finance process to be inefficient, high cost, time-intensive and labour-intensive.

Efficiency is Priority

Paper-intensive practices are time-consuming, and as the number of parties involved in the process increases, it also leads to a rise in the possibilities of typos, missing information and loss of documents during delivery. It may also cause risks such as unauthorised documents or document fraud.

Seeing the need to boost efficiency in trade finance, and thanks to technology, organisations such as banks, FinTech companies and even IT companies are developing solutions and tools to evolve the old ways of financing trade transactions, to catch up with the growing demand for trade financing.

Technology not only replaces outdated paper and manual-based processes, which are inefficient, but it can also deliver unprecedented levels of cybersecurity that are critical in today’s digital transaction space.

Employees do not need to prepare similar trade finance applications from scratch every time, as standard information will automatically be filled on the form. There’s also no need to get physical signatures of managers for all applications and then courier it out with other supporting documents. With technology, managers can approve the applications anytime, anywhere, and the bank will be able to receive the application once it is submitted. In the past, this process may take hours or days to complete, but now you may be able to complete it within a few minutes.

Multi-bank Trade Finance Portals

There are also multi-bank trade finance portals available in the market to help companies apply for trade finance products efficiently and manage all their trade finance applications easily via only one portal.

Ditching the problem of having to remember multiple passwords and the difficulties of familiarising oneself with various trade finance portals, a multi-bank trade finance portal makes it easier for users to apply, monitor, manage and to keep track of all the applications statuses.

CamelONE™ Trade Finance

CamelONE Trade Finance is the first multi-bank portal in Singapore. With CamelONE Trade Finance, all you need is a single sign in, and you will be able to gain access to a range of trade finance products from multiple banks and conveniently track all your trade finance application statuses in real-time.

As a value-added service on Singapore’s Networked Trade Platform (NTP), this portal is able to take advantage of NTP’s document repository for data reusability, to save user’s time filling in repeated applications.

Say goodbye to mundane, repetitive data entries for recurring transactions and unlock the value of efficiency for your organisation.

Why you should sign up for CamelONE Trade Finance now

For a limited time, vCargo Cloud (VCC) is partnering with DBS to offer free sign-ups for CamelONE Trade Finance, 50% discount for VCC’s permit declarations and 25% fee rebate on DBS’ trade finance commission fees.

Sign up now

With technology, there are solutions to evolve the old ways of financing trade transactions, to catch up with the growing demand for trade financing.