Global Trade Finance Market Overview:
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 According to AMA, the Global Trade Finance market is expected to see growth rate of 4.54%
- Mitigate Risk from Suppliers
- Involvement of Clearing House and Trade through Financial Market Integration
- Efficiency in Trade and Supply Chain
- Adoption of Futuristic Supply Chain Technology
- Adoption of Structuring and Pricing Tools
- Stringent Regulatory & Financial Crime Compliance
- Diversifying Customer Portfolio
- Manual Handoff Increase Complexity in Tracking and Limit Efficiency
- Change in Economic and Political Condition
- Nonpayment or Delayed Payment by Foreign Buyers
Some of the key players profiled in the report are 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). Additionally, following companies can also be profiled that are part of our coverage like 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). Analyst at AdvanceMarketAnalytics see United States Players to retain maximum share of Global Trade Finance market by 2024. Considering Market by Service Providers, the sub-segment i.e. Banks will boost the Trade Finance market. Considering Market by End user , the sub-segment i.e. Exporters will boost the Trade Finance market.
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%.
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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The top-down and bottom-up approaches are used to estimate and validate the size of the Global Trade Finance market.
In order to reach an exhaustive list of functional and relevant players various industry classification standards are closely followed such as NAICS, ICB, SIC to penetrate deep in important geographies by players and a thorough validation test is conducted to reach most relevant players for survey in Trade Finance market.
In order to make priority list sorting is done based on revenue generated based on latest reporting with the help of paid databases such as Factiva, Bloomberg etc.
Finally the questionnaire is set and specifically designed to address all the necessities for primary data collection after getting prior appointment by targeting key target audience that includes Local & International Banks, Custom Bodies and Export Traders.
This helps us to gather the data related to players revenue, operating cycle and expense, profit along with product or service growth etc.
Almost 70-80% of data is collected through primary medium and further validation is done through various secondary sources that includes Regulators, World Bank, Association, Company Website, SEC filings, OTC BB, USPTO, EPO, Annual reports, press releases etc.