Trade Finance Market Scope
Global and local bank support international trade through a wide range of products to help the customer manage their payment and associated risk. Trade Finance deals with monetary activities related to commerce and international trade. In this, Trade finance introduce the third party to the transaction to remove the payment risk and supply risk according to the agreement. It provides a means which turn the export opportunity in sales and get paid on time and effectively manages to mitigate or reduce the risk involved in an international trade transaction. Various intermediaries such as banks and financial institutions facilitate the transactions by financing the trade. It then, allows you to protect against international trade unique inherent risk as currency fluctuation, political instability, issues of non-payment and other. According to the International chamber of commerce (ICC) report, world trade flow will grow at an annual rate of about 4.3% and nearly reach USD 19 Trillion by 2020. The majority of this trade is driven by global infrastructure development which is expected increase due to rise in population and urbanization
The market study is being classified by Type (Supply Chain Finance, Letter Of Credit, Structured Trade And Commodity Finance, Export And Agency Finance and Trade Credit And Political Risk Insurance), by Application (Finance, Energy, Power Generation, Transport, Renewables, Metals & Non Metallic Minerals and Other) and major geographies with country level break-up. According to AMA, the Global Trade Finance market is expected to see growth rate of 4.54%
Research Analyst at AMA predicts that United States Players will contribute to the maximum growth of Global Trade Finance market throughout the predicted period.
Societe Generale (France), China Exim Bank (China), BNP Paribas (France), Citigroup (United States), JPMorgan Chase & Co (United States), HSBC Holdings PLC (United Kingdom), Mitsubishi UFJ Financial (Japan), Credit Agricole (France), Bank of America Merrill Lynch (United States), Standard Chartered (United Kingdom), Euler Hermes (France), Asian Development Bank (Philippines) and Royal Bank of Scotland (United Kingdom) are some of the key players profiled in the study. Additionally, the Players which are also part of the research are ICBC (China), Mizuho Financial Group (Japan), Commerzbank (Germany), Bank of Communication (China), ANZ (Australia), Afreximbank (Egypt), Export-Import Bank of India (India), AlAhli Bank (Saudi Arabia) and EBRD (United Kingdom).
AdvanceMarketAnalytics has segmented the market of Global Trade Finance market by Type, Application and Region.
On the basis of geography, the market of Trade Finance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Europe region held largest market share in the year 2018. Asia Pacific on the other hand stood as second largest market due to the presence of key companies into the region and high technological advancement. If we see Market by Service Providers, the sub-segment i.e. Banks will boost the Trade Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by End user , the sub-segment i.e. Exporters will boost the Trade Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
According to International Chamber of commerce (ICC) about 60% of bank are moving toward greater digitalization. Digitalization would cut trade finance cost up to USD 6 Billion in 3-5 years and boost bank’s trade finance revenue by 10%
- Adoption of Futuristic Supply Chain Technology
- Adoption of Structuring and Pricing Tools
- Mitigate Risk from Suppliers
- Involvement of Clearing House and Trade through Financial Market Integration
- Efficiency in Trade and Supply Chain
- Diversifying Customer Portfolio
- Stringent Regulatory & Financial Crime Compliance
- Change in Economic and Political Condition
- Manual Handoff Increase Complexity in Tracking and Limit Efficiency
- Nonpayment or Delayed Payment by Foreign Buyers
Key Target AudienceLocal & International Banks, Custom Bodies and Export Traders
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Data related to EXIM [Export- Import], production & consumption by country or regional level break-up can be provided based on client request**
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