How Can Technology Impact International Trade Finance Companies?
Technology, and its ever-changing abilities, affects every business. Technology’s integration across industries has resulted in people raising their expectations of speed and ease of use. Such higher expectations can be applied to the world of trade, where the impacts of technology are currently shaking up the procedures of international trade finance companies. As shipping is becoming a more streamlined process, many businesses are turning to these trade finance companies for blockchain financing as well as supply chain financing.
Technology Creates an Information Highway for Import and Export Companies
Current events have always affected trade throughout the world. However, at one time, information was not as available, and trade was not as fluid as it is today. News on the economy took longer to spread than the pace at which events were occurring in real-time, and buyers were comfortable waiting longer to receive the supply of their inventory.
In contrast, when China recently halted imports of soybeans from the U.S., other suppliers got wind of the news quickly. Due to the advancement of technology, this economic change gave competitors the opportunity to increase production and fill the spot of China’s import business. Being that suppliers and buyers alike require a quick turnaround, there is a constant need for transactions to be conducted seamlessly. Supply chain finance companies are contacted to help the supplier financially mitigate risk while increasing production and exporting larger quantities.
Blockchain Technology May Streamline the Trade Finance Industry
Just as technology has advanced trade, it is also revolutionizing the world of financing. Currently, many trade finance companies and factoring companies are updating the methods they use to keep track of records, monitor financials, and run their operations. With these updates, clients are benefitting from an expedited process of the import/export transaction. In addition, companies are saving money because the systems are more up-to-date and running at a smoother pace with more accuracy.
The trade finance industry has recently explored a blockchain financing structure. Blockchain is typically something discussed in accounting and other mathematical or scientific equations. It allows users to enter new information into the chain and disables them from altering prior information already logged into the system. Therefore, the records remain concise and easy to maintain. Blockchain is secured with a coded lock and any party participating in the trade financing of the transaction would have access.
This type of technology eliminates the need to keep hard copy paper files that can easily get lost or destroyed. It keeps financers honest while removing the ability to change older records involved in blockchain. In other words, it streamlines the process, increasing revenues and eliminating unnecessary uses of time where the shipping process is involved.
Tradewind, a leading international trade finance firm, is dedicated to staying at the forefront of the latest technologies and integrating them into their business process.
Technology Can Make Trade Digital
The point of increased usage of technology is to make life easier. When it comes to trading and trade financing, technology has made the demand for supplies more urgent. As discussed, companies and the end clients are expecting quick delivery. However, if trade and trade financing are not digitized, the industry cannot keep up with demand. As a result, companies that refuse to upgrade to a digitized system will meet greater resistance in the marketplace.
Digitizing, while it may appear to be an expensive proposition, will save trade companies and their finance companies billions of dollars. Items can easily be inventoried, shipped, and even financed with a few clicks of a mouse or push of a few buttons. Records are then stored in a central location, as opposed to many different facilities. Therefore, they can be easily retrieved.
The world has changed, and technology has made it move at a much faster, more streamlined pace. Companies are more aware of the state of affairs throughout the world with the availability of information at their fingertips, making the trade business move more rapidly than ever before. Trade finance companies, such as Tradewind Intelligent Trade Finance, strive to keep up with the new, fast-paced world by adopting new digital platforms, among other things. Tradewind Intelligent Trade Finance can provide intelligent trade financing to help their clients meet the demands and expectations within the evolving and fast-moving trade world.