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 market for Trade Finance is expected to register a CAGR of 4.54% during the forecast period to 2026. This growth is primarily driven by Mitigate Risk from Suppliers, Involvement of Clearing House and Trade through Financial Market Integration and Efficiency in Trade and Supply Chain.
Globally, a noticeable market trend is evident Adoption of Futuristic Supply Chain Technology
. The Financials sector in the Europe region has been increasing at a sustainable rate and further growth is expected to be witnessed over the forecast period, owing to the robust investments and expansion in production facilities in the region. Major Players, such as 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) etc have either set up their manufacturing facilities or are planning to start new provision in the dominated region in the upcoming years.
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%.
- 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 and Nonpayment or Delayed Payment by Foreign Buyers
AMA Research follow a focused and realistic research framework that provides the ability to study the crucial market dynamics in several regions across the world. Moreover, an in-depth assessment is mostly conducted by our analysts on geographical regions to provide clients and businesses the opportunity to dominate in niche markets and expand in emerging markets across the globe. This market research study also showcase the spontaneously changing Players landscape impacting the growth of the market. Furthermore, our market researchers extensively analyse the products and services offered by multiple players competing to increase their market share and presence.
Customization in the Report
AMA Research features not only specific market forecasts, but also include significant value-added commentary on:
- Market Trends
- Technological Trends and Innovations
- Market Maturity Indicators
- Growth Drivers and Constraints
- New Entrants into the Market & Entry/Exit Barriers
- To Seize Powerful Market Opportunities
- Identify Key Business Segments, Market Proposition & Gap Analysis
Against this Challenging Backdrop, Trade Finance Study Sheds Light on
The Trade Finance Market status quo and key characteristics. To end this, Analyst at AMA organize and took survey of the Trade Finance industry Players. The resultant snapshot serves as a basis for understanding why and how the industry can be expected to change.
Where Trade Finance industry is heading and what are the top priorities. Insights are drawn from financial analysis, the survey and interviews with key executives and industry experts.
How every company in this diverse set of Players can best navigate the emerging competition landscape and follow a strategy that helps them position to hold value they currently claim, or capture the new addressable opportunity.
Frequently Asked Questions (FAQ):1. What is the growth rate predicted for the Global Trade Finance Market?
The Trade Finance market is expected to see a CAGR of 4.54% during projected year 2020 to 2026.2. Who are the top performing companies in Trade Finance Market?
Top performing companies in the Global Trade Finance market 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), to name a few.3. Which region dominated the worldwide market for Trade Finance in 2020?
Europe is dominating the Trade Finance Market.