TradeTech

TradeTech | ICC, TFG and WTO Guide

TradeTech

Welcome to the TFG TradeTech hub. International trade and trade finance is going through rapid innovation, thanks to the advancement of both developed and brand new technologies. In the TFG TradeTech hub, we focus on how technologies affect the digitalisation of freight and transport, trade and customs and access to finance. TradeTech can help reduce some of the biggest challenges when it comes to paper documents, access to MSME finance and getting goods from A to B would be easier.

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Videos – TradeTech

TradeTech Podcasts





Featured Insights

Using Optical Character Recognition to streamline international trade One of the difficulties related to international trade is the large volume of paper documents that make up much of the information flow between the different parties, including various documents such as invoices, bills of lading, certificates of origin, and customs declarations. 
The path to paperless: Five tips for UK businesses to prepare for digital trade documents Despite most industries witnessing digital leaps forward over the past decade, the world of trade has kept its focus on paper-based documentation. In fact, trade documents such as promissory notes, bills of lading, and performance bonds have remained relatively unchanged for centuries.
Commodity Trading Week 2023 From food crises to sustainability: Navigating the commodity trade finance space in 2023 Just over two weeks ago, Commodity Trading Week gathered over 300 experts from across the world, tackling some of the most pertinent questions and challenges in the industry. TFG summarises the key findings.

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TradeTech – Layers

TradeTech – Frequently Asked Questions

What is the definition of TradeTech?

Trade finance technology, often abbreviated as TradeTech, refers to the use of technology, innovation, and software to support and digitally transform the trade finance industry. It is often considered to be a subcategory of the more widely used term, FinTech. TradeTech, which can include several technologies, puts a particular emphasis on the application of technology and software to modernise trade finance.

These technologies include but are not exclusively limited to cloud computing, optical character recognition (OCR), internet of things (IoT), big data analytics, artificial intelligence (AI), quantum computing, distributed ledger technology (DLT) and application programming interface (API).

Who uses TradeTech and what is its role in global trade?

TradeTech can be used by any firm in the international trade ecosystem. While TradeTech applications are often developed by large banks or innovative technology companies, the applications themselves are not limited to this demographic. 

Many micro, small and medium enterprises (MSMEs), however, are often under the impression that technology is simply not for them and view it as complex and costly. This may be due to the idea that some digital trade technology solutions focus more on trying to explain the technology itself rather than simplifying the explanation and service offering to MSMEs, leading to a lack of audience engagement. Continual efforts to make MSMEs aware of the plethora of opportunities available to them are important. Governments may have a role to play in this respect to raise awareness and provide education for MSMEs.

How has the COVID-19 pandemic impacted TradeTech?

The COVID-19 pandemic has rapidly accelerated the development and adoption of many TradeTech applications. Largely, these have come about as a result of a lack of physical employee presence at the usual places of business, coupled with the inability to print and transport documents. Operating under “normal” processes has not been an option. To cope, banks have been forced to create or scale up ad hoc digital processes.

Despite this firm-level acceleration, there have also been indications that many banks have not received significant meaningful support from government authorities to facilitate trade on digital terms. Nevertheless, the desperate necessity for paperless workarounds has set the industry on a digital course.

Does TradeTech include data security?

Absolutely. Given the vast amounts of data that exist today, data security must be treated as a top priority and subsequently exists at the heart of nearly every TradeTech application. For some, like distributed ledger technology, the security of data is at the core of their reason for being. 

For many firms, using TradeTech applications will go a long way towards boosting their data security. This is because TradeTech providers generally operate internationally. In order to do so effectively, the data security standards that they use to protect consumer data must meet the stringent requirements of every region they operate within. For most end-users, this means that their data will be protected to a standard greater than that legally required in their own jurisdiction.  

What is the most prominent technology in trade?

There is a complex interplay between all of the technologies used in trade. Each technology relies on the capabilities of others to deliver its most powerful benefits. Some of them work to collect and deliver data, others analyse and interpret this data, and still others provide the infrastructure which allows this communication to occur. Take, for example, the role of the internet of things (IoT) in this relationship. IoT devices and sensors on their own provide minimal value. However, when they are combined with the secure transmission capabilities of distributed ledger technology (DLT) and the analytical capabilities of big data analytics tools enabled by artificial intelligence (AI), they are able to deliver meaningful and actionable information.

To name one technology as the most prominent would be like deciding which part of a car is the most important. One could argue the engine, or the brakes, or the tires – but it is safe to agree that the car is just better when it has all of these combined together. 

Why is technology in trade so underdeveloped relative to other industries?

Many of the cumbersome processes that exist in trade today have been developed to allow parties to a transaction to trust the outcome of the transaction even if they do not trust their counterparties. Considering that the counterparties are often on opposite sides of the globe and operating in vastly different legal systems, it has been critical to thoroughly develop robust instruments that both parties trust to facilitate these transactions. 

Until recently, the technological tools that could be used simply did not suffice in facilitating this trust – meaning that they were just not good enough to replace the paper processes that were already in place. This led to several decades of technological progress in other industries that effectively bypassed international trade.  

Today, however, with advancements in technology such as distributed ledger technology (DLT), it is finally possible to trust digital mechanisms in lieu of their paper counterparts that have been in use for so long.  

How can TradeTech help inform trade policy?

Most current national regulations do not allow most TradeTech solutions to be widely adopted. This stems from legal concerns, such as the ambiguity of Uniform Customs and Practice for Documentary Credits (UCP) rules, which do not specify whether digital tools such as artificial intelligence (AI) can be used in lieu of humans. As increased developments and proofs of concept demonstrate the efficiencies and power of TradeTech, policymakers around the globe will be forced to modernise their nation’s policy or sit idly by as the global economy moves on without them. 

The United Nations Commission on International Trade Law (UNCITRAL) has already developed a model law that would create an enabling regulatory framework recognizing e-signatures and e-documents – the Model Law on Electronic Transferable Records (MLETR).  The UNCITRAL MLETR has already been adopted by 2 countries – the Kingdom of Bahrain and Singapore. Its adoption by the broader global community is critical to the continual development of TradeTech solutions. 

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Contents

Access trade, receivables and supply chain finance

We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.
Get started

Latest TradeTech News

02Jun

Using Optical Character Recognition to streamline international trade

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One of the difficulties related to international trade is the large volume of paper documents that make up much of… Read More →

31May

Streamlining and digitalising supply chains: Enigio AB’s trace:original delivers success

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Enigio AB has announced the successful completion of the inaugural digital end-to-end trade document transaction, made possible by their trace:original… Read More →

29May

TFG Weekly Trade Briefing, 29th May 2023

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Your Monday morning coffee briefing from TFG, 8th May 2023… Read More →

26May

Electronic bills of lading: Are we there yet?

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To successfully digitalise Bills of Lading, the three necessary foundations are law, standards and technology. Without their proper application, any… Read More →

25May

The path to paperless: Five tips for UK businesses to prepare for digital trade documents

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Despite most industries witnessing digital leaps forward over the past decade, the world of trade has kept its focus on… Read More →

24May

HSBC launches B2B point-of-sale financing solution

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Today, HSBC unveiled a pioneering banking solution in Hong Kong, introducing point-of-sale financing for business-to-business (B2B) transactions. This offering will… Read More →

23May

ITFA to release new industry study on ESG framework

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The existing regulatory frameworks overseeing sustainability reporting in the Financial Institutions sector are giving rise to numerous unexpected outcomes that… Read More →

22May

TFG Weekly Trade Briefing, 22nd May 2023

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Your Monday morning coffee briefing from TFG, 8th May 2023… Read More →

19May

From food crises to sustainability: Navigating the commodity trade finance space in 2023

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Just over two weeks ago, Commodity Trading Week gathered over 300 experts from across the world, tackling some of the… Read More →

15May

TFG Weekly Trade Briefing, 15th May 2023

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Your Monday morning coffee briefing from TFG, 15th May 2023… Read More →

11May

European markets stall as foreign direct investment remains static

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According to the EY European Attractiveness Survey 2023, In 2022, foreign direct investment (FDI) in Europe experienced sluggish growth, increasing… Read More →

09May

Future of UK customs digitalisation – CDS, Single Trade Window and customs compliance considerations

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As part of trade facilitation, the UK government introduced the Electronic Trade Documents Bill, which is currently undergoing legal stages… Read More →

09May

From the MLETR to ETDB: Turbocharging the acceptance of digital trade documents

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At the ICC United Kingdom’s annual conference in partnership with the Center for Digital Trade and Innovation, Trade Finance Global’s… Read More →

05May

Singapore completes first cross-border electronic transferable record trade

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Singapore has taken another step forward in being a regional leader in trade digitisation as they continue to develop programmes… Read More →

04May

BNP Paribas announces digital currency in China

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Today, BNP announced a collaboration with the Bank of China, launching a new digital wallet service and wallet applications for… Read More →

About the Author

Deepesh Patel is Editorial Director at Trade Finance Global (TFG). In this role, Deepesh leads efforts in developing TFG’s brand, relationships and strategic direction in key markets, including the UK, US, Singapore, Dubai and Hong Kong.

Deepesh regularly chairs and speaks at international industry events with the WTO, BCR, Excred, TXF, The Economist and Reuters, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.

Deepesh is the host of the ‘Trade Finance Talks’ podcast and ‘Trade Finance Talks TV’. He is co-author of ‘Blockchain for Trade: A Reality Check’ with the ICC and the WTO, alongside other industry research.

In addition to his work at TFG, Deepesh is a Strategic Advisor for WOA, and works closely with ITFA. He also sits on the Fintech Working Group of the Standardised Trust.

Prior to TFG, Deepesh worked at Travelex where he was responsible for the cards business and the Travelex Money app in Europe, NAM, UK and Brazil. Deepesh is Chair of Governors and co-opted LA Governor of the Wyvern Federation, which has responsibility for 5 primary schools in South London.

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