As tariffs and geopolitical developments reconfigure the global trade landscape at breakneck speed, players in the trade finance sphere have no choice but to turn towards digitisation to stay afloat. 

This is especially true for Europe and Latin America, which have been hard-hit by the recent array of US tariffs and resulting economic turbulence. However, in chaos there is opportunity: many corporates and institutions have been using the recent uncertainty to forge new partnerships and strengthen their supply chains around the globe. 

BBVA, the Spanish banking giant and major Latin American player, recently added Surecomp’s RIVO™ to its digital offering to drive trade finance transformation.

Silvia Andreoletti, Senior Editor at Trade Finance Global (TFG), spoke to Francisco Fernández de Trocóniz, Head of Global Trade & International Banking at BBVA, João Teles, Sales Director for Iberia at Surecomp, and Enno-Burghard Weitzel, Chief Solutions Officer at Surecomp, to find out more about the collaboration and the journey to trade digitisation in the Spanish-speaking world.

Silvia Andreoletti (SA): Over six months on from the start of Trump’s tariffs, how are you seeing global firms – especially in Europe and Latin America – cope or adapt?

Francisco Fernández de Trocóniz (FFT): The tariff measures announced by Trump have prompted global firms, particularly in Europe and Latin America, to rethink the structure of their operations and supply chains well beyond simple cost adjustments. 

Our view at BBVA is that while the tariff regime introduces friction, it inadvertently accelerates the adoption of more robust trade finance and operational frameworks, particularly in Europe and Latin America. Firms that are investing in visibility, digitalisation and alternative trade routes are demonstrating better adaptability, optimising now for resilience rather than cost. 

João Teles (JT): European corporates are focusing on diversification and digitalisation. For example, manufacturers are shifting sourcing from high-tariff regions and increasing redundancy with suppliers in Southeast Asia, Mexico and the EU to mitigate exposure. 

Several corporates, including Volvo and Unilever, have accelerated their cost-cutting programs and, in some cases, are shifting production of vulnerable product lines to the US to circumvent the new import barriers. Meanwhile, companies affected by the high tariffs are either directly raising prices or strengthening their local presence in the US to protect their market share. On the back end, they have reviewed customs tariff codes and hired customs consultants to identify relief programs (active improvement and drawback, to name a few).

The experience in Latin America is, I would say, more heterogeneous than in Europe. Countries rich in natural resources have seen their agricultural and mineral exports gain competitiveness in markets affected by tariffs on American and Asian products. Brazilian coffee and footwear producers, for example, can secure new opportunities in the US and China as these countries retaliate against each other’s imports. 

SA: What have been some of the specific challenges faced by those firms, and how have they responded?

FFT: European firms are navigating dual pressures from rising input costs and supply chain disruptions, responding with near-shoring strategies, alternative sourcing, and stronger risk management. Many are also adopting digital tools to improve supply chain visibility and react more swiftly to disruptions, moving from a “just in time” approach in their working capital management to a more “just in case” approach.

In Latin America, some firms leverage regional trade agreements, deepening intra-regional links, and developing new commercial routes with Asia and Europe to balance global demand shifts. Across both continents, the emphasis is moving from short-term efficiency to long-term flexibility and strategic agility.

JT: Latin America continues to face the challenge of higher import costs and increased competition resulting from commodity re-purposing, primarily in metals and manufactured goods. Respective governments responded by exploring legal remedies through the World Trade Organization and negotiating specific tariff reductions for key exports such as beef, textiles, and agricultural products.

In both regions, risk management practices have become more sophisticated to anticipate ongoing disruptions. Nearshoring and friend-shoring, as well as regional trade bloc growth, strengthen intra-EU and hemispheric supply chains, which is amazing.

SA: What are you seeing as the main challenges to full trade digitalisation and integration in developed countries?

FFT: The main obstacles to full trade digitalisation are less about technology itself and more about structure, governance, and coordination.

Industry bodies and supranational institutions are playing a crucial role in bridging these gaps. Progress is being made, but it remains irregular. Only through a coordinated approach between public institutions, regulatory bodies, and the private sector can digital trade evolve from a collection of isolated solutions into a fully connected global ecosystem.

Enno-Burghard Weitzel (EBW): If we could only have one common regulation, in the same vein as the General Data Protection Regulation (GDPR), for example, that mandates everyone to digitise their trade, it would compel everyone to act. 

In the absence of this, it will continue to be slow progress, but the corporates are gaining pace and demanding a better digital service from their banks. 

In terms of integration, interoperability and connectivity, we are there. Our RIVO™ platform is designed to centralise ecosystem communication between all parties, so there is no barrier to fostering collaborative trade finance as far as we’re concerned.

SA: How is technological innovation affecting how banks interact with their clients? Is this a change for the better or worse?

EBW: Definitely a change for the better. Technology is driving banks to interact more efficiently and more digitally with their clients. As we’ve come to expect communication on demand in our consumer lives, companies are now expecting the same in their corporate lives, and banks need to deliver to retain their business. 

FFT:  One risk I can identify is that rapid innovation may lead to the creation of “digital islands”, isolated platforms and proprietary solutions that cannot communicate effectively with one another. This market fragmentation limits the potential of digitalisation, as clients and banks must still navigate multiple systems and standards. 

SA: Looking forward, which aspects or products in trade finance do you think will be the first to become fully digital worldwide, and which are proving more troublesome?

FFT: Some areas of trade finance are moving rapidly toward full digitalisation, while others continue to face challenges due to structural complexity. 

Documentary trade instruments such as guarantees and standby letters of credit are leading this transformation. These products benefit from relatively standardised processes, and the growing adoption of multibank digital platforms is accelerating their digital maturity. 

By contrast, achieving full end-to-end digitalisation of documentary credit processes and complex cross-border transactions (with many parties involved) remains more challenging. These transactions often cross multiple jurisdictions, each with differing legal interpretations of electronic documents and compliance requirements still rooted in paper-based regulation. 

EBW: It seems that we’ll see the biggest shifts towards digitisation in the seemingly easy products, such as collections. Unlike the guarantee or LC, the collections as trade finance instruments carry no title, so their power is not limited to local regulation and jurisdiction, but by contractual agreement between the bank and the drawee and drawer. 

The one pivotal document that needs to be digitised is the bill of lading, and we do in fact see a continuous pickup of electronic bills of lading (eBLs). However, it’s not only the instruments themselves that need to become digital. The corporate-bank engagement needs to move to digital too, and banks’ internal processes can often significantly benefit from digitisation and automation.

SA: In the next 25 years, what do you think will be the most transformative change or new technology to affect the global trade finance industry?

FFT: Over the coming decades, data will become the central asset of trade finance. The ability to aggregate, standardise, and share high-quality data across borders will enable faster, more accurate decision-making and reduce operational risk. 

At the same time, DLT and blockchain-based infrastructures will ensure trust, traceability, and immutability in every transaction. This will be complemented by interoperable, open platforms that connect banks, corporates, logistics providers, and customs authorities in a shared digital ecosystem.

EBW: It has to be AI. We are only just at the beginning of seeing what is possible with AI: rather than replacing humans, AI will automate more and more administrative tasks, freeing up human time to focus on more strategic initiatives.